For 2019 through 2022, Tanisha, who is single, borrowed a total of $25,000 for highereducation expenses on qualified education loans. In 2023, while still living at home and beingclaimed by her parents as a dependent, she began making payments on the loan. The firstyear's interest on the loan was reported as $750, and her AGI for the year was less than $75,000. The amount thatTanisha can claim on her 2023 tax return isa. $750.b. $540.c. $425.d. $0

Maximizing tax benefits involves understanding and strategically utilizing available deductions. For…

Answered: For 2019 through 2022, Tanisha, who is…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Selma operates a contractor's supply store. She maintains her books using the cash method. At the end of 2023, her accountant computes her accrual basis income that is used on her tax return. For 2023, Selma had cash receipts of $1,400,000, which included $200,000 collected on accounts receivable from 2022 sales. It also included the proceeds of a $100,000 bank loan. At the end of 2023, she had $250,000 in accounts receivable from customers, all from 2023 sales. Question Content Area a. Compute Selma's accrual basis gross revenues for 2023.$fill in the blank fd1ff2f0c02e01e_1 Question Content Area b. Selma paid cash for all of the purchases. The total amount paid for merchandise in 2023 was $1,300,000. At the end of 2022, she had merchandise on hand with a cost of $150,000. At the end of 2023, the cost of merchandise on hand was $300,000. Compute Selma's gross income (profit) from merchandise sales for 2023. The cost of goods sold for 2023 under the accrual method…
Rex Luther is an Anesthesiologist. He is single and has an adjusted gross income of $244,500. He paid $5,200 in student loan interest in 2022. How much can he deduct in student loan interest as an adjustment to his income?
Answer the following questions: Under a 2017 divorce agreement, Joan is required to pay her ex-husband, Bill, $700 a month until their daughter is 18 years of age. At that time, the required payments are reduced to $450 per month. (a) How much of each $700 payment may be deducted as alimony by Joan? (b) How much of each $700 payment must be included in Bill’s taxable income? ____________________ (c) How much would be deductible/included if the divorce agreement were dated 2021?
Rita is a self-employed taxpayer who turns 39 years old at the end of the year (2022). In 2022, her net Schedule C income was $304,000. This was her only source of income. This year, Rita is considering setting up a retirement plan. What is the maximum amount Rita may contribute to the self-employed plan in each of the following situations? Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. Problem 13-85 Part b (Algo) b. She sets up an individual 401(k).
Rachel is a part-time sales associate for Bob Ridings Chevrolet. She works on commission. On December 25, 2022, Rachel received $15,500 of income from commissions, plus an advance of $1,500 on future commissions. She also received a $1,350 check for expense reimbursements from her employer after turning in her receipts as part of her employer’s tuition reimbursement plan. How much taxable income should Rachel report on her 2022 return?
Evan is single and has AGI of $277,300 in 2023. His potential itemized deductions before any limitations for the year total $52,300 and consist of the following: Medical expenses (before the 7.5%-of-AGI limitation) Interest on home mortgage State income taxes Real estate taxes Charitable contributions $31,000 8,700 9,500 3,600 2,500 After all necessary adjustments are made, what is the amount of itemized deductions Evan may claim? Do not round intermediate calculations. Round medical deduction and final answer to the nearest dollar. Evan's total itemized deduction is $ 26,403
Lewis and Laurie are married and jointly own a home valued at $262,000. They recently paid off the mortgage on their home. The couple borrowed money from the local credit union in January of 2022. How much interest may the couple deduct in each of the following alternative situations? (Assume they itemize deductions no matter the amount of interest.) Note: Leave no answer blank. Enter zero if applicable. Required: The couple borrows $62,000, 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 for purposes unrelated to the home. The couple pays $3,800 interest on the loan during the year, and the couple files a joint return. The couple borrows $154,000, 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 $6,300 interest on the loan during the year, and the couple files a joint…
Susan and Stan Collins live in Iowa, are married and have two children ages 6 and 10. In 2020, Susan's income is $43,120 and Stan's is $12,000 and both are self-employed. They also have $500 in interest income from tax exempt bonds. The Collins enrolled in health insurance for all of 2020 through their state exchange and elected to have the credit paid in advance. The 2020 Form 1095-A that the Collins received from the exchange lists the following information: Annual premiums $9,800 Annual premium for the designated silver plan in the state $10,800 Total advance payment of the premium tax credit $9,200 The Federal Poverty Line for a family of four is $25,750. Table for Repayment of the Credit Amount Single Taxpayers OtherThan Single Less than 200% $325 $650 At least 200% but less than 300% 800 1,600 At least 300% but less than 400% 1,350 2,700 At least 400% No limit No limit Click here to access the 2020 Applicable Figure Table to use for this…
Rita is a self-employed taxpayer who turns 39 years old at the end of the year (2023). In 2023, her net Schedule C income was $314,000. This was her only source of income. This year, Rita is considering setting up a retirement plan. What is the maximum amount Rita may contribute to the self-employed plan in each of the following situations? Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. Problem 13-85 Part a (Algo) a. She sets up a SEP IRA. Maximum contribution
4. Sandi, files her 2020 taxes as head of household taking her two children, ages 14 and 11, as dependents. Her 2020 wages were $95,000. Her divorce was finalized in 2019 and per the settlement she is required to pay $1,500 of alimony per month to her ex-spouse. She has taxable interest income of $2,000, qualified dividends of $12,000 and a long-term capital gain on stocks she sold in 2020 of $10,000. In addition, on December 31, 2020 she sold her residence for $400,000. She had purchased the house in June of 2017 for $225,000 and has lived in it since. Compute Sandi's taxable income and income tax liability for 2020?
Jessica purchased a home on January 1, 2019, for $580,000 by making a down payment of $230,000 and financing the remaining $350,000 with a loan, secured by the residence, at 6 percent. During 2019 and 2020, Jessica made interest-only payments on this loan of $21,000 (each year). On July 1, 2019, when her home was worth $580,000, Jessica borrowed an additional $145,000 secured by the home at an interest rate of 8 percent. During 2019, she made interest-only payments on the second loan in the amount of $5800. During 2020, she made interest-only payments on the second loan in the amount of $11,600. What is the maximum amount of the $32,600 interest expense Jessica paid during 2020 that she may deduct as an itemized deduction if she used the proceeds of the second loan to finish the basement in her home and landscape her yard? (Assume not married filing separately.) (Enter only numbers with no dollar signs or other punctuation.)
Taylor, age 14, is claimed as a dependent by her parents. For 2023, she has the following income: $3,200 wages from a summer job, $1,755 interest from a money market account, and $1,875 interest from City of Chicago bonds. If required, round your answers to the nearest dollar. If required, round your answers to the nearest dollar. If an amount is zero, enter "0". Click here to access the 2023 tax rate schedule. a. Taylor's standard deduction for 2023 is $ Taylor's taxable income for 2023 is $ Feedback Check My Work $ 3,600 ✔ . To reduce the tax savings that result from shifting income from parents to children, the net unearned income (commonly called investment income) of certain children is taxed using special rules. This provision, commonly referred to as the kiddie tax, applies to any child who is under age 19 (or under age 24 if a full-time student) and has unearned income of more than $2,500. b. Compute Taylor's "net unearned income" for the purpose of the kiddie tax. 1,755 X 0 X.…

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