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![Problem 13-67 (LO 13-4) (Algo)
(The following information applies to the questions displayed below.]
In 2023, LeSean (age 54 and single) has earned income of $3,600. He also has $32,200 of unearned (capital gain)
income.
Problem 13-67 part a (Algo)
a. If he does not participate in an employer-sponsored plan, what is the maximum deductible IRA contribution LeSean can make in
20237
Maximum deductible IRA contribution](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F738c5608-f308-48c8-9cb4-8062219286c9%2Ff178e24b-e801-44f8-bd19-621d52ba4549%2F6izwuxc_processed.jpeg&w=3840&q=75)
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- Noah and Olivia Anderson are a married couple in their early 20s living in Dallas. Noah Anderson earned $73,000 in 2018 from his job as a sales assistant. During the year, his employer withheld $4,975 for income tax purposes. In addition, the Andersons received interest of $350 on a joint savings account, $750 interest on tax-exempt municipal bonds, and dividends of $400 on common stocks. At the end of 2018, the Andersons sold two stocks, A and B. Stock A was sold for $700 and had been purchased four months earlier for $800. Stock B was sold for $1,500 and had been purchased three years earlier for $1,100. Their only child, Logan, age 2, received (as his sole source of income) dividends of $200 from Hershey stock. Although Noah is covered by his company’s pension plan, he plans to contribute $5,000 to a traditional deductible IRA for 2018. Here are the amounts of money paid out during the year by the Andersons: Medical and dental expenses (unreimbursed) $ 200State and local property…Kim's net worth at the beginning of the year is $250,000. Across the year she earns $60,000 before tax and pays tax of $15,000, spends $30,000, and makes a capital loss on her assets of $10,000. By the end of the year, her net worth isTyrone, who is single and under age 65, had the following income in 2022: $59,800 in wages $200 in interest $10,000 in gambling winnings $5,000 in short-term capital gains. Tyrone filed a Schedule A, Itemized Deductions, for 2022. While preparing that schedule, Tyrone, who had no above-the-line deductions, listed the following below-the-line deduction items he had incurred during the year: $2,500 in medical expenses $9,000 of mortgage interest paid on a mortgage of $300,000 $4,000 in real estate taxes $2,600 in state taxes $12,000 in gambling losses $3,400 in unreimbursed employee business expenses. What is the total amount of Schedule A itemized deductions that Tyrone can report in 2022?
- In 2022, Tom and Alejandro Jackson (married filing jointly) have $232.000 of taxable income before considering the following events: (Use the dividends and capital gains tax rates and tax rate schedules.) a. On May 12, 2022, they sold a painting (art) for $114,000 that was inherited from Grandma on July 23, 2020. The fair market value on the date of Grandma's death was $92,000, and Grandma's adjusted basis of the painting was $25,800. b. They applied a long-term capital loss carryover from 2021 of $10,400. c. They recognized a $12,200 loss on the 11/1/2022 sale of bonds (acquired on 5/12/2012). d. They recognized a $4,240 gain on the 12/12/2022 sale of IBM stock (acquired on 2/5/2022). e. They recognized a $17,960 gain on the 10/17/2022 sale of rental property (the only 51231 transaction), of which $8,640 is reportable as gain subject to the 25 percent maximum rate and the remaining $9.320 is subject to the 0/15/20 percent maximum rates (the property was acquired on 8/2/2016). f. They…In 2023, Mickey and Minnie Mouse are married, and their taxable income is $600,000, which includes $100,000 of unrecaptured $1250 gains from the sale of real estate (taxed at a maximum rate of 25 %) and $200,000 of long-term capital gain from the sale of stock. SHOW YOUR WORK. Questions 1. What is the Mouse's ordinary income for 2023? 2. What is the Mouse's ordinary tax liability for 2023? on the gain from selling the real estate in 2023? the net long-term capital gain from the sale of stock in 2023? Mouse's total income tax liability in 2023? 3. What is the Mouse's tax 4. What is the Mouse's tax on 5. What is theKay turned 73 on March 17th of Year 2 (which was after the year 2023 and before the year 2033). Her profit-sharing account balance was $500,000 at the end of Year 1 and $550,000 at the end of Year 2. Her beneficiary is her favorite granddaughter, Jordan, who turned 12 years old on July 23rd of Year 2. Assume that the joint life expectancy factor for a 73-year-old and a 12-year-old is 73 and the joint life expectancy for a 74-year-old and a 13-year-old is 72. Also, assume that the life expectancy factor based on the uniform lifetime table for someone who is 72, 73 and 74, is 27.4, 26.5, and 25.5, respectively. Kay takes a distribution of $10,000 in November of Year 1 and in Year 2. What is the Kay's minimum distribution for Year2? $18,868. $6,849. $20,073. $20,755.
- In 2020 Richard Cranium made $42000 from their employer, but he did well in the stock market and was paid $5000 in dividends. What was his tax liability?John, age 40, is single and has the following income and expenses for 2020: Salary $170,000 Net rental income $7,200 Dividend income (qualified) $4,000 Interest from TD bank $65 Interest from City of Phila bonds $1,200 Loss on sale of section 1244 stock purchased directly from the Corporation $40,000. Alimony payment (divorce finalized December 30, 2018) $12,000. Loss on personal auto as a result of an auto accident $2,500 Contribution to traditional IRA $5,000 Charitable contributions $750 Mortgage interest on personal residence $12,000 Real estate taxes $4,500 State income taxes $5,219 Parking ticket (occurred during work related meeting) $100. Medical expenses (not reimbursed) $4.980. Calculate John’s AGI, taxable income and tax liability for 2020.In 2020, Mackenzie had employment income of $40,000, property income of $3,000, a business loss of $22,000, an allowable business investment loss of $5,000, income from an RRSP withdrawal of $2,000, and a capital loss of $40,000 on the sale of shares in a public corporation. Mackenzie hopes that the losses will result in a net income for tax purposes of $O. Required: A) Determine Mackenzie's net income for tax purposes in accordance with Section 3 of the Income Tax Act. B) Based on your answer in Part A, explain to Mackenzie why there will or will not be a tax liability this year, assuming that the taxable income will be equal to the net income for tax purposes. C) How would your answer change in Part A if Mackenzie realized a taxable capital gain of $30,000 in 2020?
