Question

1.

Glenn is an accountant who races stock cars as a hobby. This year Glenn was paid a salary of $80,000 from his employer and won $2,000 in various races. What is the effect of the racing activities on Glenn's taxable income if Glenn has also incurred $4,200 of hobby expenses this year? Assume that Glenn itemizes his deductions but has no other miscellaneous itemized deductions.

		no change in taxable income.
		increase in taxable income of $1,640.
		increase in taxable income of $2,000.
		decrease in taxable income of $2,200.
		decrease in taxable income of $560.

2.

Frieda is 67 years old and deaf. If Frieda files as a head of household, what amount of standard deduction can she claim in 2019?

		$20,300.
		$18,350.
		$12,200.
		$19,650.
		$13,850.

3.

Campbell, a single taxpayer, has $400,000 of profits from her general store, which she operates as a sole proprietorship. She has no employees, $40,000 of qualified property, and $500,000 of taxable income before the deduction for qualified business income. How much is Campbell's deduction for qualified business income?

		$100,000.
		$80,000.
		$1,000.
		$0.
		$20,000.

Answer 1

1. Glenn is an accountant who races stock cars as a hobby. This year Glenn was paid a salary of $80,000 from his employer and won $2,000 in various races. What is the effect of the racing activities on Glenn's taxable income if Glenn has also incurred $4,200 of hobby expenses this year? Assume that Glenn itemizes his deductions but has no other miscellaneous itemized deductions.

increase in taxable income of $1,640.

2.

Frieda is 67 years old and deaf. If Frieda files as a head of household, what amount of standard deduction can she claim in 2019?

$12,200

3. Campbell, a single taxpayer, has $400,000 of profits from her general store, which she operates as a sole proprietorship. She has no employees, $40,000 of qualified property, and $500,000 of taxable income before the deduction for qualified business income. How much is Campbell's deduction for qualified business income?

may be there is some typing mistake . the answer is $10,000

reason :

Her deduction for qualified business income is limited to 20% of her taxable income before the deduction. She is not subject to the wage limit because her income falls below the $157,500 threshold