Jane Doe (DOE) is self-employed as an advertiser (cash basis financial details below). Additionally, DOE rents...

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Jane Doe (DOE) is self-employed as an advertiser (cash basis financial details below). Additionally, DOE rents out a room in her house on Airbnb (financial details below). DOE purchased her principal residence for $600,000 in 2020. Prior to the current tax year, DOE loaned her sister $10,000. During the current tax year, DOE's sister filed for bankruptcy and received a full discharge of all her debts. DOE also had the following financial activity: Advertising Business Financials: EIN: 55-5555555 DBA: Your Name Here Address: 112 Corp. Blvd. Ste 100, Anytown, CA 90000 Payments received from clients: $75,000 Payments made for her business: $5,500 office supplies; $6,000 in client related travel; Rental Business Financials: $4,000 in accounting and legal fees; $12,000 in office rent; $4,000 in utilities; and $250 for ten gift baskets for ten clients. Days rented: 10 Rents received per day: $500 Payments made for her rental: $500 cleaning costs; $200 in utilities; $100 in accounting fees; o $1,000 in bedding purchases; and $100 in food and other items for guests. For simplicity, please ignore any possible QBI deductions. Jane Doe (DOE) is self-employed as an advertiser (cash basis financial details below). Additionally, DOE rents out a room in her house on Airbnb (financial details below). DOE purchased her principal residence for $600,000 in 2020. Prior to the current tax year, DOE loaned her sister $10,000. During the current tax year, DOE's sister filed for bankruptcy and received a full discharge of all her debts. DOE also had the following financial activity: Advertising Business Financials: EIN: 55-5555555 DBA: Your Name Here Address: 112 Corp. Blvd. Ste 100, Anytown, CA 90000 Payments received from clients: $75,000 Payments made for her business: $5,500 office supplies; $6,000 in client related travel; Rental Business Financials: $4,000 in accounting and legal fees; $12,000 in office rent; $4,000 in utilities; and $250 for ten gift baskets for ten clients. Days rented: 10 Rents received per day: $500 Payments made for her rental: $500 cleaning costs; $200 in utilities; $100 in accounting fees; o $1,000 in bedding purchases; and $100 in food and other items for guests. For simplicity, please ignore any possible QBI deductions.

Answer rating: 100% (QA)

Answer To calculate Jane Does taxable income from her advertising and rental businesses we need to c... View the full answer