This year Mary received a $395 refund of state income taxes…

This year Mary received a $395 refund of state income taxes that she deducted on her tax return last year. Mary included a total of $4,400 of state income taxes when she itemized deductions last year. What amount of the refund, if any, should Mary include in her gross income this year?

Bill operates a proprietorship using the cash method of acco…

Bill operates a proprietorship using the cash method of accounting, and this year he received the following: $200 in cash from a customer for services rendered this year a promise from a customer to pay $180 for services rendered this year tickets to a football game worth $200 as payment for services performed last year a check for $190 for services rendered this year that Bill forgot to cash How much income should Bill realize on Schedule C?

Shelley is self-employed in Texas and recently attended a tw…

Shelley is self-employed in Texas and recently attended a two-day business conference in New Jersey. After Shelley attended the conference, she had dinner with an old friend who lived nearby. Shelley documented her expenditures (described below). What amount can Shelley deduct? Airfare to New Jersey $ 2,160 Meals purchased at the conference 236 Meal with an old friend 130 Lodging in New Jersey 434 Rental car 196