Ronald Koff earns $50,000 and his wife Ashley earns $120,000. Ronald and Alyssa have a business that earns $40,000 (before any deductions in this problem). The business takes 50% of the Koff house. Peyton Koff is 12 years old and works in the business, cleaning and doing other similar tasks. He is paid $5,000. He also goes to after-school care at a cost of $4,000.

Alyssa sold stock that she purchased several years ago at a gain of $20,000. The Koffs have medical expenses of $1,000, state income taxes $9,000, property taxes of $3,000, mortgage interest of $10,000, charitable contributions of $17,000, and federal withholdings of $30,000.


Prepare the Koffs’ tax return in good form.

Answer rating: 100% (QA)

24 Salary 50000 KOFF AShle 24120000 AfterschooL eare ... View the full answer