Homework

1W. Please submit your answers to the following questions and problems in a Word document. You should include a cover page and a references page for this assignment. Your qualitative answers should be written in full sentences with depth to your responses when needed. For questions and problems requiring computations, you need to share your supporting calculations.

These questions and problems are located in your 2021 CCH Federal Taxation Comprehensive Topics textbook by Smith, Harmelink, and Hasselback.

· Question 11 Chapter#1

Why is income-shifting considered such a major tax planning concept?

 

· Question 35 Chapter#2

Jim files his return one month after the due date and pays the remaining $8,000 of tax owed by him. What are his delinquency penalties?

 

· Question 37 Chapter#2

Olivia is being audited by the IRS. The revenue agent determines that certain expenses that were deducted on her return are not valid, and he accordingly makes adjustments to her tax liability. Upon receipt of her 30-day letter, she phones you, a CPA, for advice regarding possible future action on the matter. What options would you discuss with Olivia?

 

· Problem 33 Capter#3

Which of the following taxpayers should itemize? Explain.

Robert is a single taxpayer. He has itemized deductions of $12,600.

Jane qualifies as head of household. Her itemized deductions total $17,850.

Brian is married and files a separate return. He has itemized deductions of $12,600.

Lisa is a surviving spouse. Her itemized deductions are $24,500.

 

· Problem 34 Chapter#3

Duke and Pat Collins have adjusted gross income of $358,000. They have itemized deductions of $20,000 consisting of $8,000 in medical expenses that exceed 10% of adjusted gross income, $3,000 in property taxes, $4,000 in housing interest, and $5,000 in miscellaneous itemized deductions. What is the amount of their itemized deductions?