In 2023, Margaret and John Murphy (both over age 65) are married taxpayers who file a joint tax return with AGI of $28,000. During the year they incurred the following expenses: Medical insurance premiums Premiums on an insurance policy that pays $100 per day for each day Margaret is hospitalized Medical care lodging (two people, one night) $1,200 400 Hospital bills Herbal supplements Dentist bills Prescription drugs and medicines Cosmetic surgery 160 2,500 75 250 360 400 In addition, they drove 122 miles for medical transportation, and their insurance company reimbursed them $500 for the above expenses. Using the Medical and Dental Expenses portion Murphy's medical expense deduction. If required, round any amount to the nearest dollar. Enter all amounts as positive numbers. Caution: Do not include expenses reimbursed or paid by others. Medical 1 Medical and dental expenses (see instructions)....... and Dental Expenses 3 Multiply line 2 by 7.5% (0.075)... 3,822 X 2 Enter amount from Form 1040 or 1040-SR, line 11 2 28,000 3 2,100 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter -0- 1,722 x

In 2023, Margaret and John Murphy (both over age 65) are married taxpayers who file a joint tax return with AGI of $28,000. During the year they incurred the following expenses: Medical insurance premiums Premiums on an insurance policy that pays $100 per day for each day Margaret is hospitalized Medical care lodging (two people, one night) $1,200 400 Hospital bills Herbal supplements Dentist bills Prescription drugs and medicines Cosmetic surgery 160 2,500 75 250 360 400 In addition, they drove 122 miles for medical transportation, and their insurance company reimbursed them $500 for the above expenses. Using the Medical and Dental Expenses portion Murphy's medical expense deduction. If required, round any amount to the nearest dollar. Enter all amounts as positive numbers. Caution: Do not include expenses reimbursed or paid by others. Medical 1 Medical and dental expenses (see instructions)....... and Dental Expenses 3 Multiply line 2 by 7.5% (0.075)... 3,822 X 2 Enter amount from Form 1040 or 1040-SR, line 11 2 28,000 3 2,100 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter -0- 1,722 x

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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For calendar year 2019, Jon and Betty Hansen (ages 59 and 60) file a joint returm reflecting AGI of $280,000. They incur the following expenditures: Medical expenses before 10% of AGI floor $30,000 Casualty loss caused by electrical fire in their home 30,000 Interest on home mortgage 11,000 Interest on credit cards 800 Property taxes on home 13,000 Charitable contributions 17,000 State income tax 15,000 Tax return preparation fees 1,200 What is the amount of itemized deductions the Hansens may claim?
ces Tamar owns a condominium near Cocoa Beach in Florida. In 2023, she incurs the following expenses in connection with her condo: Insurance $580 545 Advertising expense Mortgage interest Property taxes 4,550 960 Repairs & maintenance Utilities 1,160 Depreciation 720 9,700 During the year, Tamar rented out the condo for 81 days, receiving $23,500 of gross income. She personally used the condo for 57 days during her vacation. Tamar's itemized deduction for nonrental taxes is less than $10,000 by more than the property taxes allocated to the rental use of the property. Assume Tamar uses the Tax Court method of allocating expenses to rental use of the property. Assume 365 days in the current year. Note: Do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount. Required: a. What is the total amount of for AGI (rental) deductions Tamar may deduct in the current year related to the condo (assuming she itemizes deductions before considering deductions…
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