probl3.xlsxSheet1
| Course Project Solutions | ||||||
| James & Pamela Brock | William Brock | |||||
| Employer paid medical premiums | 10,000 | 1,200 | ||||
| Medical insurance premiums paid by taxpayer | 4,000 | 8,000 | ||||
| Medical expenses related to eye surgery not covered by insurance | 17,500 | - 0 | ||||
| Reimbursements from medical insurance carrier | 5,200 | - 0 | ||||
| Prescription drug costs | 1,800 | 2,200 | ||||
| State income taxes withheld by employer | 6,750 | 450 | ||||
| State income tax paid when filing tax return | 2,300 | - 0 | ||||
| Real estate taxes on residence | 12,000 | - 0 | ||||
| Real estate taxes on Westchester Wood's property | 5,000 | - 0 | ||||
| Property tax on automobile | 950 | 375 | ||||
| Property tax on Westchester Wood's delivery truck | 375 | - 0 | ||||
| Sewer use charge | 295 | - 0 | ||||
| Home mortgage interest | 14,400 | - 0 | ||||
| Home equity interest | 2,200 | - 0 | ||||
| Cash gifts - properly supported | 1,800 | 1,500 | ||||
| Contribution - artwork | 27,500 | - 0 | ||||
| Contribution - land | - 0 | 67,800 | ||||
| Contribution carryover from a prior year | - 0 | 14,000 | ||||
| Unreimbursed travel expenses | 700 | 180 | ||||
| Safe deposit box | 55 | - 0 | ||||
| Tax preparation | 400 | 125 | ||||
| Red shaded amounts cannot be used as itemized deduction. | ||||||
| Medical deduction: | ||||||
| - 0 | - 0 | |||||
| Less 10% of AGI if under 65, 7.5% if over 65 | ||||||
| AGI James & Pamela: $ | Formula for this line: - AGI x applicable % of AGI: Example: -40000*10% | |||||
| AGI William: $ | Formula for this line: - AGI x applicable % of AGI: Example: -40000*10% | |||||
| Deductible Medical Expenses | - 0 | - 0 | ||||
| Interest deduction: | ||||||
| Deductible Interest Expenses | - 0 | |||||
| Deduction for Taxes: | ||||||
| Deduction for Taxes | - 0 | - 0 | ||||
| Contribution Deduction: | ||||||
| Contribution Deduction | - 0 | - 0 | ||||
| Contribution Carryforward: | - 0 | - 0 | ||||
| Miscellaneous Itemized Deductions: | ||||||
| - 0 | - 0 | |||||
| Less 2% of AGI | ||||||
| AGI James & Pamela: $ | Formula for this line: - AGI x applicable % of AGI: Example: -3000*2% | |||||
| AGI William: $ | Formula for this line: - AGI x applicable % of AGI: Example: -3000*2% | |||||
| Miscellaneous Itemized Deduction | - 0 | - 0 | ||||
Things to remember: 1. Use 2013 forms, tax rates and % of AGI nondeductible amounts. I will deduct points for incorrect forms, etc. 2. William is over 65 this may affect one of your % of AGI rates. 3. Shade items that will not be deductible in red 4. You will have to calculate the amount of home equity interest that will be allowed as a deduction. 5. You will have to calculate the amount of tax preparation fees that are deductible as a personal deduction 6. You will have to determine the deductible part of William's contribution of land. William has a $14,000 contribution carryover from the prior year 7. The top of the spreadsheet contains all the entries from the project instructions. If you scroll down, you will see areas to show your calculations. 8. Read each item carefully. Some of the items on this list may be for the business or nondeductible. 9. Use your text and the IRS website as resources. 10. Use AGI amounts from Module 5. I provided you with the correct amounts when I returned your work. 11. If you do not like this spreadsheet, you can design your own, but it has to show all of your work. 12. For the final course project, you will have to redo the Schedule A forms because James and Pamela's AGI will change and they all may have more itemized deductions. This part of the project will give you a good start to completing the final Schedule A forms.
