Solution-Determine taxable incomes

Determine taxable incomes

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Reference no: EM131776528

M and W are husband and wife. They are filing joint tax returns for both 2013 and 2014 and have zero dependents. Below are their income and deductions for each year. Determine their taxable incomes, if any, for each year.

Item	2013	2014
Interest Income	4,000	3,000
Business gross receipts	400,000	225,000
Business cost of sales	200,000	175,000
Other business expenses	125,000	125,000
M's Salary (not from the business)	80,000	40,000
Net Capital Gains/(losses)	15,000	(3,000)
Interest Expense on Mortgage	25,000	22,000
Property taxes	4,000	3,000
Medical expenses (before any limitation)	10,000	0
Casualty loss (personal, before any limits but after insurance reimbursement)	0	4,000

Reference no: EM131776528

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Determine taxable incomes

Reference no: EM131776528

Reference no: EM131776528

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