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- Martin Aggerwal has a 30% interest in a partnership. During the current year, the partnership realized capital gains of $42,000 , received non-eligible dividends of $15,000, and made charitable donations of $6,000. Martin has made no charitable donations personally. He has no income that will be subject to the 33% federal income tax rate. Which of the following statements is correct? Martin will have capital gains of $6,300, a federal dividend tax credit of $933, and a charitable donations tax credit of $494. Martin will have taxable capital gains of$6,300, a federal dividend tax credit of $467, and a charitable donations tax credit of $494. Martin will have taxable capital gains of $6,300, a federal dividend tax credit of $467, and a charitable donations tax credit of $522. Martin will have taxable capital gains of$12,600, a federal dividend tax credit of$467, and a charitable donations tax credit of $522Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2023, she sells the following long-term assets used in her business: Asset Building Equipment Sales Price $ 230,000 80,000 Description Taxable income Tax liability Lily's taxable income before these transactions is $190,500. What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Cost $ 200,000 148,000 $ Amount Accumulated Depreciation $ 52,000 23,000 227,500Jane and Ed Rochester who are filing Married Filing Jointly are married with a 2-year-old child, who lives with them and whom they support financially. They normally take the standard deduction. What would be the 2023 Gross Income if Ed and Jane realized the following items of income and expense: Ed's Salary $ 35,000 Jane's Salary $100,000 Municipal bond interest income $400 Capital Loss on Investments of ($5,000) Ordinary Dividends $2500 Standard Deduction $27,700 Real property tax (from AGI) $10,000 Charitable contributions (from AGI) $7,000 $134,500 O $132,500 $122,500 $106,800
- Check my work. Bill and Mary filed a joint Federal income tax return this year. Mary owns a 30% interest in MAJIC Partnership, a women’s dress boutique. Mary’s share of the partnership’s net income is $280,000. Her shares of the partnership’s W–2 wages and unadjusted basis of depreciable property are $100,000 and $300,000, respectively. Mary’s share of the partnership income is $280,000 * 20% = $56,000 50% of W-2 wages is $100,000*.5= $50,000 25% of W-2 wages plus 2.5% of adjusted basis of depr prop = $100,000 * 25% +$300,000 * 2.5% =$32,500 The QBI deduction is $50,000 per the limitation phase What is the maximum QBI deduction if MAJIC’s income was from qualified services and Bill and Mary’s total taxable income was $450,000? The QBI deduction can be used for qualified service businesses only if the taxable income before the QBI deduction does not exceed the threshold. Since MAJIC’s…Elsie received the following distributions from Virginiana Mutual Fund for the calendar year 2019: Ordinary dividends (nonqualifying) $250 Capital gain distributions $170 Nontaxable distributions $80 Elmer, Elsie's husband, did not own any of the Virginiana Mutual Fund shares, but he did receive $1,600 in interest on a savings account at the Moss National Bank. Elmer and Elsie filed a joint income tax return for 2019. What portion of the distributions from Virginiana Mutual Fund is taxable as ordinary income on their 2019 individual income tax return? a.$420 b.$0 c.$500 d.$250 e.None of these choices are correct.Mr. and Mrs. Poe earned $135, 900 compensation income and $963 interest this year and recognized a $600 short-term capital gain and a $7,200 long-term capital gain on the sale of securities. They incurred $4,400 investment interest expense and $28, 500 other itemized deductions. Use 2023 Individual tax rate schedules and Tax rates for capital gains and qualified dividends. Required: Compute the Poes' income tax on a joint return if they don't elect to treat long-term capital gain as investment income. Compute the Poes' income tax if they elect to treat enough long-term capital gain as investment income to allow them to deduct their investment interest.
- In the current year, Larry gives $50,000 cash and $30,000 of stock to Mike. He also gives $40,000 of tax-exempt bonds to Angela. His wife , Susan , gives $200,000 of land to Angela and $20,000 cash to Pete. Assume the couple elects gift splitting for the current year. Larry's taxable gifts reported on his gift tax return total A. $170,000 B. $130,000 C. $125,000 D. $30,0001. In 2020, Joanne invested $90,000 for a 20% interest in a partnership in which she is a material participant. The partnership reported losses of $340,000 in 2020 and $180,000 in 2021. Joanne’s share of the partnership losses was $68,000 in 2020 and $36,000 in 2021. How much of these losses can Joanne deduct on her tax return? $0 in 2020; $0 in 2021. $68,000 in 2020; $22,000 in 2021. $68,000 in 2020; $36,000 in 2021. $68,000 in 2020; $0 in 2021.In 2023, Janet and Ray are married filing jointly. They have five dependent children under 18 years of age. Janet and Ray's taxable income (all ordinary) is $2,400,000, and they itemize their deductions as follows: state income taxes of $10,000 and mortgage interest expense of $25,000 (acquisition debt of $300,000). Use Exhibit 8-5 and Tax Rate Schedule for reference. a. What is Janet and Ray's AMT?
- 1. Peter and Renee, who file married filing jointly, recelved $30,200 of Social Security benefits this year ($12,000 for Peter, $18,200 for Renee). They also received $5.000 of interest from jointly owned City of Milwaukee bonds and $15,000 of dividend income from stocks owned by Peter. Their final gross income is: a. $15,000. b. $16,550. C. $21,550. d. $30,100. e. none of the above.n 2022, Janet and Ray are married filing jointly. They have five dependent children under 18 years of age. Janet and Ray's taxable income (all ordinary) is $2,403,400, and they itemize their deductions as follows: state income taxes of $15,100 and mortgage interest expense of $25,000 (acquisition debt of $300,000). Use Exhibit 8-5 and Tax Rate Schedule for reference. Whats the amtTrevor is a single individual who is a cash-method, calendar-year taxpayer. For each of the next two years (2022 and 2023), Trevor expects to report salary of $108,000, contribute $8,350 to charity, and pay $3,500 in state income taxes. Required: a. Estimate Trevor's taxable income for 2022 and 2023 using the 2022 amounts for the standard deduction for both years. b. Now assume that Trevor combines his anticipated charitable contributions for the next two years and makes the combined contribution in December of 2022. Estimate Trevor's taxable income for each of the next two years using the 2022 amounts for the standard deduction. c. Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $3,400 and $31,000, respectively, each year. Estimate Trevor's taxable income for each of the next two years (2022 and 2023) using the 2022 amounts for the standard deduction and also assuming Trevor makes the charitable…
