Darius, an unmarried individual, lived with his 15 year old daughter, Jackie, during all of 2021. For 2021, he had the following tax information: Wages $110,000 Interest income 3,500 Lottery winnings Short-term capital gain Self-employment income 10,000 4,000 4,500 Life insurance proceeds received 50,000 Net rental income 12,000 Gift received from mom 15,000 Self-employment tax paid 636 Alimony paid (divorce was finalized on 2/15/2019) Speeding ticket paid Grocery bill (monthly) 7,000 400 500 Itemized deductions 15,500 Calculate Darius's taxable income and tax liability for 2021.
Darius, an unmarried individual, lived with his 15 year old daughter, Jackie, during all of 2021. For 2021, he had the following tax information: Wages $110,000 Interest income 3,500 Lottery winnings Short-term capital gain Self-employment income 10,000 4,000 4,500 Life insurance proceeds received 50,000 Net rental income 12,000 Gift received from mom 15,000 Self-employment tax paid 636 Alimony paid (divorce was finalized on 2/15/2019) Speeding ticket paid Grocery bill (monthly) 7,000 400 500 Itemized deductions 15,500 Calculate Darius's taxable income and tax liability for 2021.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter8: Property Transactions: Capital Gains And Losses, Section 1231 And Recapture Provisions
Section: Chapter Questions
Problem 3BCRQ
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