Phil is a self employed plumber and his wife, Lauren, is a full-time employee for the...

Phil is a self employed plumber and his wife, Lauren, is a full-time employee for the University. Lauren has health insurance from a qualified plan provided by the University, but Phil has chosen to purchase his own health insurance rather than participate in Lauren's plan. Besides paying $5,400 for his health insurance premiums, Phil also pays the following expenses associated with his plumbing business:

Plumbing tools and supplies $1,300

Rent on Phil's plumbing shop 6,250

Transportation between Phil's shop and various job sites 500

Plumber's Uniform 50

Plumbing truck rental 7,200

Self employment tax (1/2 is employer's share 400

What is the amount of deductions for AGI that Phil can claim this year (2018)?

Solutions

Expert Solution

Parameter	$
Plumbing tools and supplies	1,300
Rent on Phil's plumbing shop	6,250
Transportation between Phil's shop and various job sites	500
Plumber's Uniform	50
Plumbing truck rental	7,200
Self employment tax (only 50%)	200
Total amount of deductions for AGI that Phil can claim this year (2018)	15,500

jeff jeffy answered 1 year ago

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