Arthur received a gift of virtual currency with a fair market value of $25,000 from his friend, Julie, who has no documentation to substantiate her basis. If the annual tax exclusion amount was $16,000 at the time of the gift, what is Arthur’s basis?
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Arthur received a gift of virtual currency with a fair market value of $25,000 from his friend, Julie, who has no documentation to substantiate her basis. If the annual tax exclusion amount was $16,000 at the time of the gift, what is Arthur’s basis?
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- During 2020, Jackie sent her brother Junnie $2,500 via a telegraphic transfer through El Banco Prieto. The bank’s remittance clerk made a mistake and credited Junnie with $250,000 which he promptly withdrew. The bank demanded the return of the mistakenly credited excess, but Junnie refused to do so. The BIR entered the picture and investigated Junnie. Would the BIR be correct if it determines that he earned a taxable income under the facts? No, it was not her fault that the funds in excess of $2,500 were credited to him. Yes, income is a taxable income regardless of the source No, he had no income because he had no right to the mistakenly credited funds. No, the funds in excess of $2,500 were in effect donated to her.! Required information [The following information applies to the questions displayed below.] Lewis and Laurie are married and jointly own a home valued at $265,000. They recently paid off the mortgage on their home. The couple borrowed money from the local credit union in January of 2021. How much interest may the couple deduct in each of the following alternative situations? (Assume they itemize deductions no matter the amount of interest.) (Leave no answer blank. Enter zero if applicable.) b. The couple borrows $160,000, and the loan is secured by their home. The credit union calls the loan a "home equity loan." Lewis and Laurie use the loan proceeds to add a room to their home. The couple pays $6,450 interest on the loan during the year, and the couple files a joint return. Deductible interest expense! Required information [The following information applies to the questions displayed below.] In 2023, Zach is single with no dependents. He is not claimed as a dependent on another's return. All of his income is from salary, and he does not have any for AGI deductions. Saved What is his earned income credit in 2023 in the following alternative scenarios? Use Exhibit 8-10. Note: Round your intermediate and final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable. b. Zach is 29 years old, and his AGI is $10,000. Eamed income credit
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