Ask Question
28 May, 23:40

Bill Holdfast owns a small retail property that he inherited from his father. There are no mortgages or interest expenses connected with the property. Bill takes an annual cost recovery expense of $5,000. The property has a monthly gross income of $1,500 and monthly operating expenses of $500. Bill's taxable income from this property will be taxed at a rate of 30%. What is the tax liability for the year?

+4
Answers (1)
  1. 29 May, 03:13
    0
    Tax Liability = $2,100

    Explanation:

    given data

    annual cost recovery expense = $5,000

    monthly gross income = $1,500

    monthly operating expenses = $500

    tax rate = 30%

    solution

    we get here tax liability for the year that is express as

    Tax Liability = [ (Rent for 1 year) - Annual cost recovery expense - (monthly operating expense in 1 year) ] * tax rate ... 1

    put here value and we will get

    Tax Liability = [ (1500 * 12) - 5000 - (500 * 12) ] * 30%

    Tax Liability = $2,100
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Bill Holdfast owns a small retail property that he inherited from his father. There are no mortgages or interest expenses connected with ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers