Investment expenses treated as miscellaneous itemized deductions do not include:
expenses incurred to generate tax-exempt income
investment interest expense
expenses for investment advice
expenses incurred to generate tax-exempt income and investment interest expense
investment interest expense and expenses for investment advice
Ms. Fresh bought 1,000 shares of Ibis Corporation stock for $5,000 on January 15, 2013. On December 31, 2015 she sold all 1,000 shares of her Ibis stock for $4,500. Based on a hot tip from her friend, she bought 1,000 shares of Ibis stock on January 23, 2016 for $3,000. What is Ms. Fresh's recognized loss on her 2015 sale and what is her basis in her 1,000 shares purchased in 2016?
$-0- LTCL and $3,500 basis
$200 LTCL and $3,300 basis
$300 LTCL and $3,200 basis
$400 LTCL and $3,100 basis
$500 LTCL and $3,000 basis
When calculating net investment income, gross investment income includes:
interest income
net short-term capital gains
non-qualified dividends
royalty income
All of these
Alain Mire files a single tax return and has adjusted gross income of $304,000. His net investment income is $53,000. What is the additional tax that Alain will pay on his net investment income for the year?
Zero
$2,014
$3,952
$1,938
None of these
Investment expenses treated as miscellaneous itemized deductions do not include:
expenses incurred to generate tax-exempt income
investment interest expense
expenses for investment advice
expenses incurred to generate tax-exempt income and investment interest expense
investment interest expense and expenses for investment advice
Ms. Fresh bought 1,000 shares of Ibis Corporation stock for $5,000 on January 15, 2013. On December 31, 2015 she sold all 1,000 shares of her Ibis stock for $4,500. Based on a hot tip from her friend, she bought 1,000 shares of Ibis stock on January 23, 2016 for $3,000. What is Ms. Fresh's recognized loss on her 2015 sale and what is her basis in her 1,000 shares purchased in 2016?
$-0- LTCL and $3,500 basis
$200 LTCL and $3,300 basis
$300 LTCL and $3,200 basis
$400 LTCL and $3,100 basis
$500 LTCL and $3,000 basis
When calculating net investment income, gross investment income includes:
interest income
net short-term capital gains
non-qualified dividends
royalty income
All of these
Alain Mire files a single tax return and has adjusted gross income of $304,000. His net investment income is $53,000. What is the additional tax that Alain will pay on his net investment income for the year?
Zero
$2,014
$3,952
$1,938
None of these
Related questions
Assistance with Tax Return Assignment questions, please.
Q1: Christen traveled to Tampa for a two day accounting convention and decided to stay an extra three days for touring/sightseeing. Travel expense is consisted of: $200 per night hotel that offers free meals; $400 airfare round-trip; $50 per day rental car, $30 per day incidental expenses. Christen drove her BMW (purchased on 8/1/2013) for 14,000 total miles in 2016 with 7,500 miles for business. Christen utilizes the automatic mileage method of claiming automobile expenses.
Q2: On January 1, 2013 Tom bought 400 shares of Microsoft for $200 per share and had a brokerage fee of $1,000. Tom sold 100 shares for $140 per share on November 12, 2015. Tom then purchased 100 shares of the same type of Microsoft stock on December 10, 2015 for $138 share. No brokerage fee was incurred on the 2015 transactions.
He had the following stock sales in 2015:
| Date Purchased | Basis | Date Sold | Amount Realized | |
| Stock 1 | 3/16/1996 | $7,850 | 7/22/2015 | $6,500 |
| Stock 2 | 2/12/2015 | 15,000 | 9/13/2015 | 19,500 |
| Stock 3 | 6/25/2011 | 11,750 | 10/12/2015 | 15,600 |
| Stock 4 | 7/19/2006 | 8,250 | 10/12/2015 | 12,800 |
| Stock 5 | 9/18/2015 | 9,400 | 11/26/2015 | 4,500 |
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Q1: I assume the Travel expense will be calculated as:
Hotels ($200 Ã 2) $400
Rental car ($50 Ã 2) $10
Incidental expenses ($30 x 2) $60
Total expenses $560
If I'm correct were would be the placements on a Tax return?
Q2: I assume itâs not a short-term capital loss instead it's a wash sale because the he repurchased the same stock before 30 days. So would be a disallowed loss and added to the new basis of the bought stock. $13,800 + $6000 disallowed loss? I assume stock 1-5 are just reported on a 8949 long term since they're realized on 2015.
need some help filling out my balance and income statement using the following information given.
Using a Percentage of Sales method from 2017 results and the Given Information below, derive the 2018 Pro Forma (forecast) Income Statement and Balance Sheet (i.e. fill in the 2018 cells with the appropriate amounts).
Is there a âplugâ needed? If so, how much is it? What does it tell you about Scarletâs forecasted 2018 financial projections and what could Scarlet do to remedy the situation?
Based on Scarletâs 2017 & 2016 financials, what is her businessâs Sustainable Growth Rate (SGR)?
Given Information:
Scarlet believes that her 2018 Revenue figure will be 12% higher than her 2017 Revenue.
She estimates that her SG&A will go up by $1,000 from 2016-2017 since she plans on getting a part-time employee.
She doesnât intend to pay any dividends for 2018.
For her Balance Sheet forecasted items she uses only 2017 results, rather than taking an average of the results (average of the % of sales) from 2016 and 2017.
Scarlet assumes Interest Expense, Curr Portion of LT Debt, and Bank Loan Payable will remain the same in 2018 as they were in 2017.
Scarlet plans on issuing $1,000 of (new) Common Stock in 2018.
Scarlet determines that she will need to spend $3,700 for a new Lemon Press machine, which will be her entire CAPEX for 2018. We will assume depreciation will be $200 for this item for 2018, and the yearly depreciation/amortization expense for the rest of Scarletâs PPE will remain the same as it was in 2017 (and assume no asset sales were made in 2017).
Intangibles and Goodwill will remain unchanged in 2018.
She is not planning on disposing of any of her assets (i.e. no asset sales).
| Income Statement | ||
| 2018 | 2017 | |
| Sales / Revenue | 46,592 | 41,600 |
| Cost of Goods Sold (COGS) | ? | 24,960 |
| Gross Profit | ? | 16,640 |
| Selling, General & Administrative (SG&A) | 13,940 | 12,940 |
| Operating Profit | ? | 3,700 |
| Interest Expense | ? | 2,000 |
| Income Before Taxes | ? | 1,700 |
| Income Tax Expense | ? | 595 |
| Net Income | ? | 1,105 |
| Assume No Dividends Paid |
| Balance Sheet | |||||||||||
| Assets | Liabilities and Stockholders' Equity | ||||||||||
| Current Assets: | 2018 | 2017 | 2016 | Current Liabilities: | 2018 | 2017 | 2016 | ||||
| Cash | ? | 2,500 | 5,495 | A/P | ? | 1,100 | 300 | ||||
| A/R | ? | 800 | 1,300 | Deferred Revenue | ? | 700 | 1,000 | ||||
| Inventory | ? | 2,900 | 1,600 | Curr Portion of LT Debt | ? | 2,200 | 5,300 | ||||
| Prepaid Rent | ? | 2,200 | 1,800 | Wages Payable | ? | 2,600 | 4,600 | ||||
| Prepaid Insurance | ? | 1,400 | 1,900 | Tot Curr Liab | ? | 6,600 | 11,200 | ||||
| Tot Curr Assets | ? | 9,800 | 12,095 | ||||||||
| LT Liab | |||||||||||
| LT Assets | Bank Loan Payable | ? | 5,500 | 3,300 | |||||||
| PPE, Gross | ? | 9,500 | 5,500 | Tot Liab | ? | 12,100 | 14,500 | ||||
| Accumul Depr | ? | 2,800 | 2,000 | ||||||||
| PPE, Net | ? | 6,700 | 3,500 | Stockholders' Equity | |||||||
| Common Stock | 4,300 | 3,300 | 1,100 | ||||||||
| Intangibles | ? | 3,000 | 3,000 | Retained Earnings | ? | 5,100 | 3,995 | ||||
| Goodwill | ? | 1,000 | 1,000 | Total Stockholders' Equity | ? | 8,400 | 5,095 | ||||
| Total Assets | ? | 20,500 | 19,595 | Total Liab + Stockholders' Equity | ? | 20,500 | 19,595 | ||||
| 2a. | PLUG (if necessary): | ? | |||||||||
| What it tells you: | ? | ||||||||||
| 2b. | Sustainable Growth Rate (SGR): | ? | |||||||||
