Answer:
The answer is: 4,500 miles
Explanation:
Lesa can only deduct 4,500 miles as transportation expenses form her taxable income. She could include any other related expenses like parking fees, tolls, etc., that she spent during her business related trips.
The 7,000 miles she drove to and form work are not considered business expenses, since going to work is not an actual part of working. It's like an employee trying to get paid for the time he or she spends in a bus going to work.
Answer: See explanation
Explanation:
a. What is Laurel’s initial tax basis in her LLC interest?
This will be the addition of the $250,000 basis for the equipment, accounts payable of $15,000 and also the $15,000 (15% × $100,000). This will be:
= $250,000 + $15,000 + $15,000
= $280,000
b. True.
Laurel’s holding period in the partnership interest begins the day the LLC interest is acquired. This is due to the fact that the asset contributed isn't a section 1232 asset. The reason for this is due to the fact that the asset was used for a year or less.
c. Sand Creek’s initial basis in the contributed property is $250,000.
d. Ten months.
Sand Creek’s holding period in the contributed property will be 10 months.
Answer: $6,000
Explanation:
Depreciation rate = (Cost - Residual value) / Expected useful life run
= (20,000 - 5,000) / 15,000
= $1 per hour
Machine ran for 6,000 hours so depreciation is;
= 6,000 * 1
= $6,000
Answer:
The answer is: B) $175
Explanation:
Caroline made an income of $500 from this transaction and it should be taxed at ordinary income rate (35%).
Caroline´s taxes = $500 x 35% = $175
In order for Caroline to be taxed at 15% (capital gains rate) she should have sold a capital asset that she had owned for more than one year, but in this case she didn´t sell any stock.
