Questiongeorge large and his wife marge large who live at

Assignment Help Taxation

Reference no: EM13348378

Question:

George Large and his wife Marge Large, who live at 2000 Lakeview Drive, Cleveland, Ohio 49001, want you to prepare their 2012 income tax return based on the information given:

George Large worked as a salesman for Toyboat, Inc. He gets a salary of $80,000 ($8,500 of federal income taxes withheld and $1,800 of state income taxes withheld) plus an expense reimbursement from Toyboat of $5,000 to cover his employer business expense. George has to make an adequate accounting to his employer and return any excess reimbursement. Furthermore, Toyboat provides George with medical insurance worth $7,200 per year. George drove his car 24,000 miles during the year, and he placed the car in service on June 1, 2010. His log shows that 18,000 miles were for sales calls to customers at the customers' offices and the remainder was personal mileage. George uses the standard mileage rate method. Consider his business miles were driven equally during the year. George is a professional basketball fan. He purchased two season tickets for a total of $4,000. He takes a customer to each game, and they discuss some business before, during, and after the games. George also takes clients to business lunches. His log shows that he spent $1,500 on these business meals. George also took a five-day trip to the Toyboat headquarters in Musty, Ohio. He was so well-prepared that he finished his business in 3 days, so he spent the other two days sightseeing. He had the subsequent expenses during each of the five days of his trip:

Airfare $200

Lodgoing $85/day

Meals $50/day

Taxicabs $20/day

Marge Large is self-employed. She repairs rubber toy boats in the basement of their home, which is 25% of the house's square footage. She had the given income and expenses:

Income from rubber toy boat repairs $15,000

Cost of suppliers 5,000

Contract labor 3,500

Long-distance phone calls (business) 500

The Large's home cost a total of $150,000, of which the cost of the land was $20,000. The FMV of the house is $225,000. The house is depreciable over a 39-year recovery period. The Larges incurred other expenses:

Utility bills for the house $2,000

Real estate taxes 2,500

Mortgage interest 4,500

Cash charitable contributions 3,500

Reference no: EM13348378

Questions Cloud

Questiondefine the problems label each questionsanalyze the : questiondefine the problems label each questionsanalyze the situationa. what important controls were ignored when ljm1

Question1 using excel prepare a flowchart documenting the : question1. using excel prepare a flowchart documenting the salescollection process for elm corporation using the facts

Questionyou are a professional accountant who has been : questionyou are a professional accountant who has been employed to provide advice to a small start up biotech company

Question 1a list five pitfalls which must be avoided while : question 1a list five pitfalls which must be avoided while carrying out a risk assessment.b as per the occupational

Questiongeorge large and his wife marge large who live at : questiongeorge large and his wife marge large who live at 2000 lakeview drive cleveland ohio 49001 want you to prepare

Questionsuppose that you work for the internal revenue : questionsuppose that you work for the internal revenue service and congress has tasked you with developing changes to

Questionshown below are errors and fraud that could affect : questionshown below are errors and fraud that could affect the fairness of the clients financial statement balance for

Questionsound audio sells audio equipment for automobiles : questionsound audio sells audio equipment for automobiles. engineers notified management in december 2013 of a circuit

Question1 the given selected transactions relate to : question1. the given selected transactions relate to liabilities of united insulation corporation. uniteds fiscal year

User Account

All Pages