While checking the computations on his Form 1040, Mr. G realized he had misclassified a $10,800 expense as a business deduction on Schedule C. The expense should have been an itemized deduction on Schedule A. Mr. G didn’t correct the error be-cause he assumed the correction wouldn’t affect taxable income. Is this assumption correct?
Answer to relevant QuestionsDetermine Ms. A’s filing status in each of the following independent cases: a. Ms. A and Mr. Z have been living together since 2013. They were married on December 13, 2015. b. Ms. A married Mr. P in 2008. They were ...Mr. and Mrs. L had the following income items: Dividend eligible for 0% preferential rate ……………… $ 3,400 Capital gain eligible for 0% preferential rate ………….. 2,900 Mrs. L’s salary ...Danny Liu is 20 years old and claimed as a dependent on his parents’ tax return. Compute Danny’s taxable income in each of the following cases: a. Danny’s only income item was $2,712 interest earned on a certificate of ...Mr. and Mrs. Coulter have four dependent children, ages 1, 4, 7, and 11. Mr. Coulter’s salary was $21,400, Mrs. Coulter’s wages totaled $16,200, and the couple had no other income or above-the-line deductions this year. ...Mr. and Mrs. O file a joint income tax return. Determine if each of the following unmarried individuals is either a qualifying child or a qualifying relative for whom the couple can claim an exemption. a. Son Jack, age 20, ...
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