1.) Prithi acquired and placed in service $190,000 of equipment on August 1, 201
ID: 2453839 • Letter: 1
Question
1.) Prithi acquired and placed in service $190,000 of equipment on August 1, 2015 for use in her sole propriertorship. The equipment is 5-year recovery property. No other acquistions are made during the year. Prithi elects to expense the maximum amount under Sec. 179. Prithi's total deductions for the yer (including Sec. 179 and depreciation) are a.) $25,000 b.) $63,000 c.) $58,000 d.) $38,000
2.) West's AGI was $90,000. During the current year he incurred and paid the following:
Professional journals $2,000
Tax return preparation fee $1,000
Dues to professional organizations $1,500
Fees for will preparation (no tax advice) $800
Life insurance premiums $1,400
None of the expenses were reimbursed. Assuming he can itemize deductions, how much should West claim as meiscellaneous itemized deductions (after limitations have been applied)? a.) $5,300 b.) $4,500 c.) $3,500 d.) $2,700
3.) Brittany, who is an employee, drove her automobile a total of 20,000 business miles in 2014. This represents about 75% of the auto's use. She has receipts as follows:
Parking (business only) $500
Tolls (business only) $200
Repairs $1,000
Brittany's AGI for the year of $50,000, and her employer does not provide any reimbursement. She uses the standard mileage rate method. After application of any relevant floors or other limitations, Brittany can deduct? a.) $11,200 b.)$11,950 c.) $12,200 d.) $13,200
Explanation / Answer
1) (a) $25000 , Under Section.179 , From 1st January,2015 limit of maximum deduction of expenses reduced to $25000 with purchase of assets of $200000 .
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.