Need help in accounting

Sam is a sole proprietor who owns, leases, and manages several apartment complexes and office buildings. During the current year, Sam incurs the following expenses:  a)$500 to his CPA for the preparation of his federal income tax return. $400 is for the preparation of Schedule C (Profit or Loss from Business)b)$300 in attorney’s fees for drafting a will.c) $250 in attorney’s fees in an unsuccessful attempt to prevent the city from rezoning the area of the city where several of his office buildings are locatedChuck, a dentist, raises prize rabbits for breeding and showing purposes. Assume that the activity is determined to be a hobby. During the year the activity generates the following items of income and expense:ItemAmountSale of rabbits for breeding stock $  800Prizes and awards  300Property taxes on rabbit hutches  200Feed  600Veterinary fees  500Depreciation on rabbit hutches  250a. What is the total amount of deductions Chuck may take during the year with respect to the rabbit raising activity?Identify which expenses may be deducted and indicate whether they are deductions for or from AGI. By what amount is the cost basis of the rabbit hutches to be reduced for the year?

Looking for this or a Similar Assignment? Click below to Place your Order

Open chat