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Lee incurred the following expenses in the current tax year. In the spaces provided, indicate whether each expenditure is deductible for AGI, from AGI, or not deductible.     Deductible       Expense Item ForAGI FromAGI NotDeductible a. Lee’s...

In early 2010, Walter Hodges began investigating the real estate market with the intention of acquiring real estate for investment or rental. He had not previously been involved in any real estate rental or investment ventures. Walter started marketing his business...

Heather owns a two story building. The building is used 40% for business use and 60% for personal use. During 2012, a fire caused major damage to the building and its contents. Heather purchased the building for $800,000 and has taken depreciation of $100,000 on the...

On July 24 of the current year, Sam Smith was involved in an accident with his business use automobile. Sam had purchased the car for $30,000. The automobile had a fair market value of $20,000 before the accident and $8,000 immediately after the accident. Sam has...

Nell, single and age 38, had the following income and expense items in 2012: Nonbusiness bad debt $ 6,000 Business bad debt 2,000 Nonbusiness long term capital gain 4,000 Nonbusiness short term capital loss 3,000 Salary 50,000 Interest income 3,000 Determine Nell’s...

Jane Smith, age 40, is single and has no dependents. She is employed as a legal secretary by Legal Services, Inc. She owns and operates Typing Services located near the campus of Florida Atlantic University at 1986 Campus Drive. Jane is a material participant in the...

A professional consulting business sells professional tools and equipment and provides associated services, such as repair and maintenance, to its customer base. The company’s employees include technicians, who are required to provide and maintain their own tools and...

Debra acquired the following new assets during 2012: Date Asset Cost April 11 Furniture $40,000 July 28 Trucks 40,000 November 3 Computers 70,000 Determine the cost recovery for the current year. Debra does not elect immediate expensing under § 179. She does take...

Martha was considering starting a new business. During her preliminary investigations, she incurred the following expenditures: Salaries $20,000 Travel 18,000 Interest on short term note 2,000 Professional fees 13,000 Martha begins the business on June 1 of the...