1. Cindy, a real estate broker, had the following income and expenses in her business (her...

 

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1. Cindy, a real estate broker, had the following income and expenses in her business (her filing status is head of household): Commissions income $180,000 And she also incurred the following expenses during the tax year: Referral fees paid to non-brokers for referrals (illegal under state law and subject to 40,000 criminal penalties) Property tax on the office Office supplies Alimony payment to her ex-husband Mortgage interest paid on her residence Legal expenses related to her business Office staff salaries Medical insurance premium paid for herself and her dependents Fees paid to Broker Association Political contribution to support her party Parking tickets received when she was meeting with her clients Unreimbursed medical expenses for herself and her dependents How much net income will be reported from this business (on Schedule C)? What is her AGI? How much is the total itemized deduction reported on her Sch. A? 5,500 3,000 7,200 6,500 20,000 40,000 5,000 7,000 3,000 500 2,000 1. Cindy, a real estate broker, had the following income and expenses in her business (her filing status is head of household): Commissions income $180,000 And she also incurred the following expenses during the tax year: Referral fees paid to non-brokers for referrals (illegal under state law and subject to 40,000 criminal penalties) Property tax on the office Office supplies Alimony payment to her ex-husband Mortgage interest paid on her residence Legal expenses related to her business Office staff salaries Medical insurance premium paid for herself and her dependents Fees paid to Broker Association Political contribution to support her party Parking tickets received when she was meeting with her clients Unreimbursed medical expenses for herself and her dependents How much net income will be reported from this business (on Schedule C)? What is her AGI? How much is the total itemized deduction reported on her Sch. A? 5,500 3,000 7,200 6,500 20,000 40,000 5,000 7,000 3,000 500 2,000

Answer rating: 100% (QA)

To calculate Cindys net income we need to subtract her expenses from her commissions income Commissi... View the full answer