Marigold's AGI was $85,000 in 2022. She incurred the following expenses:Property taxes on primary residenceUnreimbursed tooth extractionMortgage interest on primary residenceHomeowner's association duesAcupuncture treatments for chronic migrainesPolitical contribution to the Independent ABCPartyInterest on credit cardGym membership$5,000$1,200$9,275$1,000$1,000$100$275$475Based on the information provided, what is the amount of expenses Marigold can deductas an itemized deduction on Schedule A?

The objective of the question is to calculate the amount of expenses Marigold can deduct as an…

Answered: Marigold's AGI was $85,000 in 2022. She…

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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During the year, Frank paid the following taxes: Federal Income Tax: $17,000 Social Security Tax: $5,000 State Income Tax: $5,000 Property Tax on Home: $3,500 How much of the above amounts is Frank entitled to deduct? Group of answer choices $3,500. $8,500. $17,000. $30,500.
Amy earns an income of 50,000 this year as an employee of rooster enterprises. She pays the following amounts during the year: Contribution to Traditional IRA : 5000 PreTax Cuts and Jobs Act Alimony she paid to her ex husband: 10,000 Medical expenses: 6000 What is Amy's Adjusted Gross Income? (AGI) a. 29000 b. 34000 c. 35000 d. 39000
During 2022, a divorced taxpayer with no dependents received or paid the following in 2022: 1. Wages (teacher) 2. Municipal bond interest 3. Qualified dividends 4. Inheritance from mother 5. Student loan interest paid 6. Gambling winnings 7. Gambling losses 8. Unemployment compensation 9. HCC tuition scholarship 10. Alimony paid to ex-spouse (divorced 2021) 11. Qualifying medical expenses 12. State income tax withholding 13. Personal property taxes on car 14. Charitable contributions 15. Rental property expenses Required: Using the letter code only, identify the tax treatment for each of the above numbered items as (a) inclusion, (b) exclusion, (c) for AGI deduction, (d) itemized deduction, (e) not deductible, (f) preferred tax treatment. More than one letter code may apply to a given numbered item. If a limitation applies to any of the numbered items, state the primary relevant dollar or percentage limitation.
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John, who files as a single taxpayer, had AGI of $90,000 for 2020. He incurred to following expenses and losses during the year: Automobile Loan Interest $ 3,000 Casualty Loss (before 10% Limitationbut after $100 floor – not in a FederallyDeclared Disaster Area) 15,000 Charitable Contributions –Church 5,000 & Goodwill – clothing costing $1,000 with $500 FMV Home Mortgage Interest 15,000 Medical Expenses – Doctors, etc. 6,000 Medical Insurance Premiums 2,000 Medical Insurance Reimbursements 1,000 Real Estate Taxes 5,000 State Sales Tax 1,500 State & local Income Taxes 6,000 Tax Preparation Fees 500 Unreimbursed Employee Business Expenses 4,000 Part 1 - Compute John’s Medical Expense deduction for 2020. Show your calculations for full credit. Answer: Part 2 - Compute John’s Itemized Deductions for 2020 starting with the Medical Expense deduction that you calculated in Part 1 above. Show your calculations for full credit. Answer: Part 3 - What is the Standard…
Scott and Bonnue, married taxpayers, earn $258,000 in taxable income and $7,700 in interest from an investment in City of Tampa bonds. If instead Scott and Bonnie earn an additional $150,000 of taxable income, what is their marginal tax rate on this income? Use the 2023 tax rate Blank 1 Use the 2023 tax rate
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Michelle paid dental and doctor bills of $20,000 in 2022. Her AGI was $100,000 and she is 50 years old. How much can Michelle claim in medical and dental expenses on Line 4, Schedule A, for tax Year 2022? $12,000 $10,000 $6,250 $7,555 $12.500
Melanie is employed full-time as an accountant for a national hardware chain. She recently started a private consulting practice, which provides tax advice and financial planning to the general public. For this purpose, she maintains an office in her home. Expenses relating to her home for 2019 are as follows: Real property taxes Interest on home mortgage Operating expenses of home $3,600 3,800 900 Melanie's residence cost $350,000 (excluding land) and has living space of 2,000 square feet, of which 20% (400 square feet) is devoted to business. The office was placed in service in February 2018, and under the Regular Method, Melanie had an unused office in the home deduction of $800 for 2018. Assume there is sufficient net income from her consulting practice. Click here to access the depreciation table. Round deprecation to the nearest dollar. a. What amount can Melanie claim this year for her office in the home deduction under the Regular Method? $ 3,455 X b. What is Melanie's office…
Medical Expenses (LO 5.6) In 2019, Margaret and John Murphy (age 66 and 68, respectively) are married taxpayers who file a joint tax return with AGl of $26,100. During the year they incurred the following expenses: Medical insurance premiums $1,300 Premiums on an insurance policy that pays $100 per day for each day Margaret is hospitalized 400 Medical care lodging (two people, one night) 65 Hospital bills 2,100 Doctor bills 850 Dentist bills 200 Prescription drugs and medicines 340 Psychiatric care 350 In addition, they drove 80 miles for medical transportation, and their insurance company reimbursed them $800 for the above expenses. On the following segment of Schedule A of Form 1040, calculate the Murphy's medical expense deduction. If required, round any amount to the nearest dollar. Enter all amounts as positive numbers.
Malcolm and Megan Johnson are both over age 65, married and are filing a joint tax return for 2020. The joint Social Security is 644-47-7833. The couple has AGI of $ 28,108 for 2020 and provided the following information all which can be verified for 2020: Medical related expenses: Medical insurance premiums $ 1,200 Premiums in insurance policy that pays $100 per day for each day that Megan is hospitalized 400 Medical care and lodging 80 Hospital bills 2,200 Doctor bills 750 Dentist bills 240 Prescription drugs and medicines 360 Over-the-counter medicines 510 Marriage counseling 400 The couple drove 90 miles for medial transportation and their insurance reimbursed them $850 for the above expenses. Taxes related expenses: Megan’s employer withheld State income tax $ 3,400 Megan paid additional state income tax for 2019 600 Real estate taxes on home 2,100 Personal property taxes based on home value 130 State gasoline taxes 80 General sales tax for the year 1,200 Federal income taxes…
Isla runs a bicycle shop in Wellington. During the tax year ending 30 June 2021, her records indicate: Receipts: 135,000 Bicycle Sales 35,000 Spare parts and accessory sales 15,000 Compensation receipt (see note A) 250,000 Proceeds for sale of land (see note B) 1,000 Net interest received from an overseas interest-bearing term deposit (see note C) 5,000 Exempt Income 6,000 Cash dividend income (see note D) 25,000 Net salary and wages (see note E) Payments: 55,000 Purchases of bicycles, spare parts and accessories (see note F) 12,000 Materials (see note G) 39,000 Utilities and rent for the business premises 3,000 Repairs to storage room 1,000 Donation to Oxfam (Deductible gift recipient) ADDITIONAL INFORMATION: (A) - Compensation for damaged trading stock after a storage room was broken into (B) - Isla sold some land purchased in 1984 for $85,000. In 2002 Isla spent $15,000 building new fences for 85% of the boundary after a fire damaged the…

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