Shanna, a calendar year and cash basis taxpayer, rents property from Janice. As part of the rental agreement, Shanna pays $24,200 rent on April 1, 2018 for the 12 months ending March 31, 2019.

a. Shanna's deduction for rent expense in 2018 is $.
b. Assume the same facts, except that the $24,200 is for 24 months' rent ending March 31, 2020. Shanna's deduction for rent expense in 2018 is

Answer and Explanation:

Given:

Rental Payment during the year = $24,200

Period = 12 months (from 1st April to 31st March)  

A. The total amount of $24,200 is deductible during the year because the total amount was pay in a single taxable year.

B. The amount deductible during the year is $9,075.

Only a 9-month payment will be considered as the deductible amount.

Computation:

$24,200 (9 month / 24 month)

$9,075

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough

1. c

2. b

3. a

4. c

5. a

6. b

7. c

8. c

9.b

10. d

just took it 100%