Accounting
econheypt01
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This year Jack intends to file a married-joint return with two dependents. Jack received $174,200 of salary and paid $5,750 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid qualified moving expenses of $5,000 and $28,500 of alimony.
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What is Jack's adjusted gross income? Assume that Jack will opt to treat tax items in a manner to minimize his AGI. |
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Suppose that Jack also reported income of $9,450 from a half share of profits from a partnership. Disregard any potential self-employment taxes on this income. What AGI would Jack report under these circumstances? Again, assume that Jack will opt to treat tax items in a manner to minimize his AGI. |
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Simpson is a single individual who is employed full-time by Duff Corporation. This year Simpson reports AGI of $56,600 and has incurred the following medical expenses: |
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Dentist charges |
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1,380 |
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Physician’s charges |
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2,100 |
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Optical charges |
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575 |
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Cost of eyeglasses |
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450 |
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Hospital charges |
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3,400 |
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Prescription drugs |
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530 |
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Over-the-counter drugs |
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685 |
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Medical insurance premiums |
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1,190 |
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1. |
Calculate the amount of medical expenses that will be included with Simpson’s itemized deductions after any applicable limitations. |
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Tim suffered greatly this year. In January a freak storm damaged his sailboat and in July Tim’s motorcycle was stolen from his vacation home. Tim originally paid $30,850 for the boat, but he was able to repair the damage for $11,100. Tim paid $20,450 for the motorcycle, but it was worth $22,050 before it was stolen. Insurance reimbursed $1,210 for the boat repairs and the cycle was uninsured. |
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Calculate Tim’s deductible casualty loss if his AGI is $50,000. |
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Calculate Tim’s deductible casualty loss if his AGI is $150,000. |
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How would you answer a. if Tim received an additional $65,000 in interest from municipal bonds this year? |
Bottom of FormTim suffered greatly this year. In January a freak storm damaged his sailboat and in July Tim's motorcycle was stolen from his vacation home. Tim originally paid $30,850 for the boat, but he was able to repair the damage for $11,100. Tim paid $20,450 for the motorcycle, but it was worth $22,050 before it was stolen. Insurance reimbursed $1,210 for the boat repairs and the cycle was uninsured.
1. Calculate Tim's deductible casualty loss if his AGI is $50,000.
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2. Calculate Tim's deductible casualty loss if his AGI is $150,000. |
3. How would you answer a. if Tim received an additional $65,000 in interest from municipal bonds this year?
