Answer:
Explanation:
prepare from 1040 to disclose Income and respective Tax
FORM 1040
Amount ($)
Salary Received 80,000
Business Income- Wn1) 2,789
Total Income 82,789
Less - Itemized wise Deduction-Wn2 21,405
Total Income 61,384
Standard deduction 11,900
Total Taxable Income 49,484
tax
From 0-$17400 10% 1,740
From $17400-$70700 15% 4,813
Total Tax Liability 6,553
Schedule A
wn2
Real Estate Tax 2,500
Interest on Mortgage 4,500
Gifts to Charity 3,500
Unreimbursed Job Expeses(FORM 2106) 10,905
Total Itemized wise Deduction 21,405
wn1
Income from rubbery toy boat 15,000
Less cost
Cost of suppies 5000
Business phone call 3500
Cost of suppies 500
Total 9000
Total Business Income 6,000
Less- FORM 8829 Expeses 3211
Business Income- 2,789
FORM 2106
Car expenses 9990
Travelling Expense 665
Meal Expenses 5500
Total 10655 5500
Less Reimbursement 5000
Total 10655 500
Expenses Allowed 10655 250
Total 10905
FORM 8829
25% is used for Business
Income from buisness 6000
Mortgage Interest' -1125
Reat estate tax -625
Utility Bills -500
Depreciation -961
Total Business Income 2789
Calculate depreciation
Lesser of fair market value or adjusted cost 1,70,000
Less - value of Land -20,000
Total 1,50,000
Basis of building 37,500
rate of depreciation 2.56%
960