Reference no: EM132601673
Questions -
Q1. Rita, a self-employed CPA, incurred the following expenses during the year:
Transportation expenses for business trip $3,000
Registration fees for business conference 700
Business-related meals 700
Country club dues (used 60% for business) 4,000
Local meals eaten alone during regular business hours after visiting client 400
Professional society dues 300
What is Rita's deduction for the year with respect to the above expenses and where will she deduct these expenses on her tax return? Assume Rita maintains all appropriate documentation.
Q2. During the current year, Donna, a single taxpayer (divorced in 2019), reports the following items of income and expenses:
Income:
Salary $86,000
Municipal bond interest 1,300
Bank account interest 2,300
Alimony received 24,000
Capital gain on an asset held less than one year 3,000
Rental income from residential rental house 12,500
Expenses/losses:
Interest on principal residence 8,000
Real estate taxes on principal residence 1,000
Capital loss on an asset held less than one year 7,000
Expenses related to rental property
Mortgage interest 6,000
Repairs 2,400
Taxes 700
Depreciation 1,200
Compute Donna's taxable income. (Please Show all calculations in good form.)