Phil is a calendar year taxpayer and a landlord. He also runs a lawn care business....
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Phil is a calendar year taxpayer and a landlord. He also runs a lawn care business. In December 2022, a tenant pays him $7,000 rent for January 2023. In January 2023, another tenant pays him $14,000 rent for November and December 2022. In December 2022, a client pays him $9,000 for three law care sessions, one in December 2022, one in January 2023, and one in January 2024. (a) If Phil is an accrual method taxpayer, how much income does he report in 2022? (b) If Phil is a cash method taxpayer, how much income does he report in 2022? Phil is a calendar year taxpayer and a landlord. He also runs a lawn care business. In December 2022, a tenant pays him $7,000 rent for January 2023. In January 2023, another tenant pays him $14,000 rent for November and December 2022. In December 2022, a client pays him $9,000 for three law care sessions, one in December 2022, one in January 2023, and one in January 2024. (a) If Phil is an accrual method taxpayer, how much income does he report in 2022? (b) If Phil is a cash method taxpayer, how much income does he report in 2022?
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Under accrual basis Income has to be reported when they are actually earned or you are entitled to i... View the full answer
Related Book For
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Posted Date:
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