TO: Tax Associate FROM: Partner SUBJECT: Research Memorandum Facts: Our client performs bookkeeping work for her...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
TO: Tax Associate FROM: Partner SUBJECT: Research Memorandum Facts: Our client performs bookkeeping work for her clients. She performs most of her client work at the client's office. She has about ten clients and spends about 4 hours per client each week at the client's office. She also has a dedicated office at her home where she does all of her administrative work for her business. The administrative work she performs is at her home office to include billing, record keeping, and training. ● . MEMORANDUM #1 ● Area of her home used for business - 500 square feet Total area of home 5,000 square feet Annual indirect costs O o Gross income from business - $100,000 O o Deductible mortgage interest - $25,000 o Real estate taxes - $1,500 o Utilities - $2,500 O Ignore depreciation for this assignment. Questions: 8. Since she has a business what other tax savings ideas she we would propose to her? TO: Tax Associate FROM: Partner SUBJECT: Research Memorandum Facts: Our client performs bookkeeping work for her clients. She performs most of her client work at the client's office. She has about ten clients and spends about 4 hours per client each week at the client's office. She also has a dedicated office at her home where she does all of her administrative work for her business. The administrative work she performs is at her home office to include billing, record keeping, and training. ● . MEMORANDUM #1 ● Area of her home used for business - 500 square feet Total area of home 5,000 square feet Annual indirect costs O o Gross income from business - $100,000 O o Deductible mortgage interest - $25,000 o Real estate taxes - $1,500 o Utilities - $2,500 O Ignore depreciation for this assignment. Questions: 8. Since she has a business what other tax savings ideas she we would propose to her?
Expert Answer:
Answer rating: 100% (QA)
Other Tax Saving Ideas Every business owner is entitled to pay taxes Since taxes ... View the full answer
Related Book For
Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley
Posted Date:
Students also viewed these accounting questions
-
Facts: Our client performs bookkeeping work for her clients. She performs most of her client work at the client's office. She has about ten clients and spends about 4 hours per client each week. She...
-
A construction project has indirect costs totalling $40,000 per week Major activities in the project and their expected durations are shown in the following precedence network: Crashing costs for...
-
Since Tanya Martin retired, she has used income from her investment in the Alger Mid Cap growth fund to supplement her other retirement income. During one three month period, the fund grew by $4,000....
-
You recently joined an accounting consulting firm. Your first client is a new manufacturing start-up that is trying to set up their costing system, and develop good processes for their upcoming...
-
Megawidget Corporation wants to buy 1,000 widget parts from Douglas Dealer. Megawidget's president, Mega Buyer, sends an e-mail message to Douglas placing an order for the 1,000 widget parts at...
-
Pratt is ready to graduate and leave College Park. His future employer (Ferndale Corp.) offers the following four compensation packages from which Pratt may choose. Pratt will start working for...
-
The numbers of false fire alarms were counted each month at a number of sites. The results are given in the following table. Test the hypothesis that false alarms are equally likely to occur in any...
-
Rapid Delivery Company acquired an adjacent lot to construct a new warehouse, paying $100,000 and giving a short-term note for $400,000. Legal fees paid were $4,500, delinquent taxes assumed were...
-
Indicate whether the following contracts are valid, void or voidable AND give the reason for the correct answer. Q.1.9 Richie buys two bottles of floor cleaner from Yellow Shoppe as he thinks that he...
-
Design the 4-to-1 MUX two ways Write a Verilog module called mux4to1 to implement 4-to-1 multiplexer using functional descriptions and if-else blocks. Write another Verilog module called...
-
9. How much do you need to deposit today to have $3,500 in 3 years assuming a 8% return? Please fill in the boxes below: PV FV Rate% Periods Payment 10. Your great uncle is giving you $50,000 when...
-
Rhinos are poached for illegal trade in their horns, valued for their medicinal properties. According to an article in the BBC, a combination of GPS trackers, heart rate monitors, and hidden cameras,...
-
Armin incurred financial distress costs only in the event that the new product failed. Why might Armin incur financial distress costs even before the success or failure of the new product is known?
-
According to the trade-off theory, all else being equal, which type of firm has a higher optimal level of debt: a firm with very volatile cash flows or a firm with very safe, predictable cash flows?
-
Why investment by UK companies continues to fall Brexit uncertainty is driving cuts in transport and machinery spending, say experts Gavin Jackson in London January 8, 2019 Investment by UK companies...
-
A field check is a(n) a. preventive control. b. detective control. c. corrective control. d. general control. e. output control.
-
4 day week is an initiative that promises business will ensure 100% of the pay to their employees, utilizing only 80% of the time, but critically in exchange for 100% of the productivity. What would...
-
(a) What is the focal length of a magnifying glass that gives an angular magnification of 8.0 when the image is at infinity? (b) How far must the object be from the lens?
-
As part of the analytical procedures of Mahogany Products, Inc., you perform calculations of the following ratios: For each of the preceding ratios: Required a. State whether there is a need to...
-
Why is the monthly reconciliation of bank accounts by an independent person an important internal control over cash balances? Which individuals will generally not be considered independent for this...
-
An essential step in difference estimation is the comparison of each computed confidence limit with tolerable misstatement. Why is this step so important, and what should the auditor do if one of the...
-
Determine the state of stress at point \(A\) on the cross section of the post at section \(a-a\). Indicate the results on a differential element at the point. 5ft 400 lb a 1.5 ft 300 lb a 2.5 in. 2...
-
The rod has a diameter of \(40 \mathrm{~mm}\). Determine the stress components that act at point \(B\), and show the results on a volume element located at this point. 1500 N 300 mm 600 N 100 Nm 800...
-
Determine the state of stress at point \(B\) on the cross section of the post at section \(a-a\). Indicate the results on a differential element at the point. 5 ft 400 lb 1.5 ft 300 lb a a 2.5 in.- 2...
Study smarter with the SolutionInn App