John is a self-employed consultant earning a gross income of $100,000 for the year 2022. John is
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Question:
John is a self-employed consultant earning a gross income of $100,000 for the year 2022. John is allowed to deduct certain expenses from his income to arrive at his taxable income. The following are John's expenses for the year:
- Rent for his office: $20,000
- Travel expenses: $5,000
- Phone and internet expenses: $2,000
- Equipment purchases: $10,000
- Professional development courses: $3,000
John is also eligible for a tax credit of $1,000 for the year. If the personal income tax rate for John is 25%, what is John's net income after taxes for the year 2022?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: