Posted: September 1st, 2023
Show Tax Computations for deductions for AGI (if any) and deductions from AGI
Jason R. and Jenni L. Dane are married and live at 13071 Sterling Drive, Marquette, MI 49866. Jason is a self-employed insurance claims adjuster (business activity code 524290), and Jenni is the dietitian for the local school district. They choose to file a joint tax return each year.
On January 2, 2018, Jason paid $31,000 (including sales tax) to purchase a gently used Toyota Camry that he uses 92% of the time for business. No trade-in was involved, and he did not claim any § 179 expensing. Jason uses the actual operating cost method to compute his tax deduction. He elects to use the 200% declining balance MACRS depreciation method with a half-year convention. His expenses relating to the Camry for 2018 are as follows:
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Gasoline $3,500
Auto insurance 1,700
Interest on car loan 820
Auto club dues 325
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Oil changes and lubrication 210
License and registration 190
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In connection with his business use of the Camry, Jason paid $510 for tolls and $350 in fines for traffic violations.
In 2018, Jason drove the Camry 14,532 miles for business and 1,248 miles for personal use (which includes his daily, round-trip commute to work).
The Danes had itemized deductions from AGI for 2017 of $16,700, of which $1,500 was for state and local income taxes.
1. Show Tax Computations for deductions for AGI (if any) and deductions from AGI (if any)
2. Name the tax schedule that should be used for the scenario
3. Are there any tax credits to be received for the given scenario
Skill Required:AccountingPosted:22 hours agoLock & Answer Now
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