Problem 5-25Interest (LO 5.8)Helen paid the following amounts of interest during the 2021 tax year:Mortgage interest on Dallas residence (loan balance $50,000)$1,600Automobile loan interest (personal use only)440Mortgage interest on Vail residence (loan balance $50,000)3,100Student loan interest775Calculate the amount of Helen's itemized deduction for interest (after limitations, if any) for 2021.

Itemized deductions are those allowances and reductions which are qualified to be deducted from…

Answered: Problem 5-25 Interest (LO 5.8) Helen…

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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8. Youngstown Decking is an accrual basis taxpayer. On July 1, 2022, Youngstown paid $22,800 cash for a comprehensive liability and property insurance policy that covers a 24-month period. The deduction for insurance expense for 2022 is: a.$11,400. b.$22,800. c.$6,650. d.$5,700. e.$950.
1
Exercise 7-30 (Algorithmic) (LO. 7) Emily, who is single, sustains an NOL of $10,600 in 2023. The loss is carried forward to 2024. For 2024, Emily's income tax information before taking into account the 2023 NOL is as follows: Adjusted gross income Itemized deductions*: Medical [$6,360 - (7.5% x $53,000)] Taxes Interest expense on home mortgage Taxable income $2,385 7,950 15,900 $53,000 (26,235) $26,765 * The 2023 single standard deduction is $13,850; Emily's itemized deductions will exceed the 2024 single standard deduction (after adjustment for inflation). How much of the NOL carryforward can Emily use in 2024, and what is her adjusted gross income and her taxable income? Emily may use $ of the NOL, resulting in adjusted gross income of $ $ and taxable income
Problem 7-6 Earned Income Credit (LO 7.2) Diane is a single taxpayer who qualifies for the earned income credit. Diane has two qualifying children who are 3 and 5 years old. During 2023, Diane's wages are $21,000 and she receives dividend income of $1,200. Earned Income Credit Phase-Out Ranges Other Than Joint Filers Joint Filers Qualifying Children Phase-out Phase-out Phase-out Phase-out Begins Ends Begins Ends None $9,800 $17,640 $16,370 $24,210 1 21,560 46,560 28,120 53,120 2 21,560 52,918 28,120 59,478 3 or more 21,560 56,838 28,120 63,398 Calculate Diane's earned income credit using the EIC table in Appendix B.
Tax Form 6251 Johnetta Boudreaux, single, had taxable income of $550,000 in 2021. She itemized her deductions which consisted of the following: State income taxes $ 8,400 Property taxes $ 9,300 Mortgage interest expense $18,900 Charitable contributions $12,000 Johnetta also had a state tax refund from 2020 of $2,400 received in 2021. She has itemized her deductions for the last seven years. Johnetta claimed Percentage Depletion of $420,000 for 2021 for a coal mine that she owns. The basis of the property at the end of the year, not including the $420,000, is $180,000. She also has interest of $1,200 from Private Activity Bonds purchased in 2018. Complete Form 6251 for Johnetta Boudreaux for the year of 2021. Her Social Security Number is 123-45-2020.
Jasmine 29 is filing as a single tax payer in 2020 she recieve income from the following sources 39000 wages Alimony payment totaling 14328 her divorce was finalize in October 2019 Unemployment compensation of 6200 Jasmine also made a timely 2000 contribution to a traditional ira for 2020 She has no other income and will file a standard deduction What is Jasmine adjustable gross ? income
Lorna Hall’s real estate tax of $2,010.88 was due on December 14, 2019. Lorna lost her job and could not pay her tax bill until February 27, 2020. The penalty for late payment is 612%612% ordinary interest. (Use Days in a year table.)a. What is the penalty Lorna must pay? (Round your answer to the nearest cent.) Penalty Pay b. What is the total amount Lorna must pay on February 27? (Round your answer to the nearest cent.) Total Amount
QUESTION 2 At the beginning of 2021, the following information relates to Farah Del Valle: Net Tax Owing Year 2019 $2,800 2020 9,400 2021 (Estimated) 6,700 Required: Calculate the minimum instalments that will be required and when they are due.
Aa.51.
4. On January 1 Patti made a $90,000 interest-free loan to her son, Alex, who used the money to pay off the $40,000 mortgage on his personal residence and also to buy a $50,000 certificate of deposit. Alex's only income for the year is his salary of $45,000 and $8,100 Federal I- BOND interest income on the certificate of deposit (9% WOW!). The relevant Federal interest rate is 3% compounded semiannually. The loan is outstanding for the entire year. a. Based on the above information, what is the effect of this loan on Patti's gross income for the year?
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26-Jaleel is an insurance agent and collects insurance premiums from his clients every month. His total collection of insurance premiums for the month of June 2019, £30,000. Which of the following is correct with regards to the calculation of VAT as per UK tax laws? a. 5% VAT on such Taxable Supplies O b. Exempted Supplies so not VAT O c. 0% VAT on such Taxable Supplies O d. 10% VAT on such Taxable Supplies

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