J sold a diamond ring for $5,000 that she purchased for $700 many years earlier. She also sold a painting for $600 that she had purchased for her living room for $1,500. What amount is to be reported in net income for tax purposes?
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J sold a diamond ring for $5,000 that she purchased for $700 many years earlier. She also sold a painting for $600 that she had purchased for her living room for $1,500. What amount is to be reported in net income for tax purposes?
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- Lena is a sole proprietor. In April of this year, she sold equipment purchased four years ago for $42,000 with an adjusted basis of $25,200 for $27,720. Later in the year, Lena sold another piece of equipment purchased two years ago with an adjusted basis of $12,600 for $8,190. What are the tax consequences of these tax transactions? Lena has an ordinary gain Lena has a § 1231 loss of $ ✔ of $ X from the sale of the first equipment. X from the sale of the second equipment.Melissa is a very generous single woman. Before this year (2023), she gave over $12,920,000 in taxable gifts over the years and has completely exhausted her applicable credit amount. In the current year, Melissa gave her daughter Riley $100,000 and promptly filed her gift tax return. Melissa did not make any other gifts this year. How much gift tax must Riley pay the IRS because of this transaction? A.$0 B.$33,200 C.$40,000 D.$45,000This year Luke has calculated his gross tax liability at $1,800. Luke is entitled to a $2,400 nonrefundable personal tax credit, a $1,500 business tax credit, and a $600 refundable personal tax credit. In addition, Luke has had $2,300 of income taxes withheld from his salary. (Input the amount as a positive value.)What is Luke’s net tax due or refund?
- Axel is single with a taxable income of $218,500. He itemizes his deductions. (Simplify your answers and round to the nearest cent.) a. How much would his tax bill be reduced if he contributed $4,200 to a tax-deductible fundraiser? Tax savings: $1470 b. How much would his tax bill be reduced if he were entitled to a $4,200 tax credit? Tax savings: $42001. Mary is age 33 and a single taxpayer with adjusted gross income for 2018 of $29,400. Mary maintains a home for three dependent children and has itemized deductions of $3,000. Calculate the following amounts for Mary's 2018 income tax return: a. Mary's standard or itemized deduction amount b. Mary's taxable income 2. Steven, age 35 and single, is a commodities broker. His salary for 2018 is $111,500 and he has taxable interest income of $40,000. He has no deductions for adjusted gross income. His itemized deductions are $31,000. Steven does not have any dependents. a. What is the amount of his adjusted gross income? b. What are his allowable itemized deductions? c. What is his deduction for personal exemptions? d. What is his taxable income? e. What is his regular tax liability from the tax rate schedules?Peter has total income of $54000. He has employment expenses of $18000, made a $5000 RRSP contribution and incurred $4000 in tuition expenses for his daughter, who did not work and is a freshman at a local community college. He has a basic personal basic amount of $12298 and his marginal tax rate is 26%. Compute Ralph's taxable income for the current year.
- Julie is the beneficiary of a discretionary trust. She is 16 years old. Last year, she received a $3,000 distribution from the trust. Julie had no other sources of income for the year. Who is liable for tax on Julie's trust income? a. Her parents b. Julie c. No one d. Trustee of the trustSheila inherited 300 shares of stock, 100 shares of Magenta and 200 shares of Purple. She has a stockbroker sell the shares for her, uses the proceeds for personal expenses, and thinks nothing further about the transactions. What issues does she face when she prepares her Federal income tax return?Kimberly is a self-employed taxpayer. She recently spent $3,300 for airfare to travel to Italy. What amount of the airfare is deductible in each of the following alternative scenarios? (Leave no answers blank. Enter zero if applicable.) a. Her trip was entirely for personal purposes. Deductible amount
- From the following information, determine Marcie’s gross income for tax purposes. Salary $40,000 Interest (checking account) 50 Cash received as birthday gift 900 Dividends (mutual funds) 500 Inheritance received upon father’s death 22,000 Cash received from insurance for accident claim settlement 3,200 Cash dividend from stock 750Leilei operates a sole proprietorship, using the accrual basis of tax accounting. Last year, she claimed a $40,125 bad debt deduction for a receivable from Jackie. But this year, Jackie sent her a check for $28,088, which Leilei accepted in full satisfaction of the receivable. How much gross income does Leilei record for the item this year? $fill in the blank 1.Maggie is filing taxes as a single filer with no kids. Her gross yearly income is $136,680, and her tax deductible purchases are: • Charitable contributions: $4,642 • Mortgage interest: $4,614 • Educational Expenses: $4,150 Compute her final income tax using the following information: Individual Taxpayers If Taxable Income Is Between: The Tax Due Is: 0- $9,875 10% of taxable income $9,876- $40,125 $987.50 + 12% of the amount over $9,875 $40,126 - $85,525 $4,617.50 + 22% of the amount over $40,125 $85,526 - $163,300 $14,605.50 + 24% of the amount over $85,525 $163,301 - $207,350 $33,217.50 + 32% of the amount over $163,300 $207,351 - $518,400 $47,367.50 + 35% of the amount over $207,350 $518,400 $156,235 + 37% of the amount over $518,400 Round your answer to the nearest dollar. Recall the standard deduction for single filers: $12,400