John R. Lane (SSN 123-44-6666) lives at 1010 Ipsen Street, Yorba Linda, California 90102. John, a...

 

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John R. Lane (SSN 123-44-6666) lives at 1010 Ipsen Street, Yorba Linda, California 90102. John, a single taxpayer, age 66, has no dependents. John is a self-employed accountant who sees and consults his clients exclusively at his home office. Other relevant information for 2020 includes: • Earnings from his consulting business: • Personal Expenses (from Schedule A (see below*)) • Other expenses (from Schedule C (see below **)) • Gain or Loss on sale of a house (see below ***) Tax Withholdings (prepayments) $94,000 * ** *** $6,000 Personal expenses: - Doctor visits for physical and dental exams Prescription drugs Vitamins $ 4,500 $ 2,770 $ 830 Medical insurance premium payments - Cosmetic surgery to improve appearance - State and local income taxes - State property taxes Legal fees to prepare a will Accounting fees for Form A analysis Interest on mortgage used to purchase qualified residence; the mortgage amount is $350,000) $10,500 $ 6,650 $ 8,000 $ 3,500 $ 2,500 $ 1,300 $12,250 ** Other expenses: Legal fees for business conflict resolution - Political contributions to local organization $10,000 $ 3,000 Home office expenses (John is using one of his rooms for home office where he exclusively is meeting with clients and conducts relating administrative and managerial tasks) $12,000 Travel expenses (John spent 5 days at the travel destination taking care of his consulting business and 3 days for pleasure) • Airfare $1,600 • Hotel - $150 per night • Meals - $50 per day Lunches and dinners with customers to discuss business $4,600 $ 800 Continuing education to retain John's license *** Gain or loss (short term or long term) on the house sale: John purchased a house in June 2007 for $300,000 He added basement for $30,000 - He repainted roof for $2,500 He repaired 3 broken doors (but not the home office door) for $3,500 John sold the house in February 2020 whereas the buyer paid $220,000 in cash and assumed remaining mortgage on the house of $75,000. - Depreciation allowed and taken as a business expense: $70,000 Complete Individual Federal Income Tax Return (Form 1040) for the year ending December 31, 2020. John R. Lane (SSN 123-44-6666) lives at 1010 Ipsen Street, Yorba Linda, California 90102. John, a single taxpayer, age 66, has no dependents. John is a self-employed accountant who sees and consults his clients exclusively at his home office. Other relevant information for 2020 includes: • Earnings from his consulting business: • Personal Expenses (from Schedule A (see below*)) • Other expenses (from Schedule C (see below **)) • Gain or Loss on sale of a house (see below ***) Tax Withholdings (prepayments) $94,000 * ** *** $6,000 Personal expenses: - Doctor visits for physical and dental exams Prescription drugs Vitamins $ 4,500 $ 2,770 $ 830 Medical insurance premium payments - Cosmetic surgery to improve appearance - State and local income taxes - State property taxes Legal fees to prepare a will Accounting fees for Form A analysis Interest on mortgage used to purchase qualified residence; the mortgage amount is $350,000) $10,500 $ 6,650 $ 8,000 $ 3,500 $ 2,500 $ 1,300 $12,250 ** Other expenses: Legal fees for business conflict resolution - Political contributions to local organization $10,000 $ 3,000 Home office expenses (John is using one of his rooms for home office where he exclusively is meeting with clients and conducts relating administrative and managerial tasks) $12,000 Travel expenses (John spent 5 days at the travel destination taking care of his consulting business and 3 days for pleasure) • Airfare $1,600 • Hotel - $150 per night • Meals - $50 per day Lunches and dinners with customers to discuss business $4,600 $ 800 Continuing education to retain John's license *** Gain or loss (short term or long term) on the house sale: John purchased a house in June 2007 for $300,000 He added basement for $30,000 - He repainted roof for $2,500 He repaired 3 broken doors (but not the home office door) for $3,500 John sold the house in February 2020 whereas the buyer paid $220,000 in cash and assumed remaining mortgage on the house of $75,000. - Depreciation allowed and taken as a business expense: $70,000 Complete Individual Federal Income Tax Return (Form 1040) for the year ending December 31, 2020.

Answer rating: 100% (QA)

In the given problem you have to find out the Total income of Mr John R Lane Since he is a person of self employed you have calculate for all his Inco... View the full answer