12 Question:47Bonnie paid $9,500 for corporate bonds that have a par value of$12,000 and a coupon rate of 9 percent, payable annually. Bonniereceived her first interest payment after holding the bonds for 12months and then sold the bonds for $9,800. If Bonnie is in a 35 percentmarginal tax bracket for federal income tax purposes, what are the taxconsequences of her ownership and sale of the bonds?

Answered: Image /qna-images/answer/f328abaa-bef7-42a2-8cfe-dd67f54abb51.jpg

Answered: Question:47 Bonnie paid $9,500 for…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter5: Business Deductions

Section: Chapter Questions

Problem 24P

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Determine the taxpayers gross income for tax purposes in each of the following situations: a. Deb, a cash basis taxpayer, traded a corporate bond with accrued interest of 300 for corporate stock with a fair market value of 12,000 at the time of the exchange. Debs cost of the bond was 10,000. The value of the stock had decreased to 11,000 by the end of the year. b. Deb needed 10,000 to make a down payment on her house. She instructed her broker to sell some stock to raise the 10,000. Debs cost of the stock was 3,000. Based on her brokers advice, instead of selling the stock, she borrowed the 10,000 using the stock as collateral for the debt. c. Debs boss gave her two tickets to the Rabid Rabbits rock concert because she met her sales quota. At the time she received the tickets, each ticket had a face price of 200 and was selling on eBay for 300. On the date of the concert, the tickets were selling for 250 each. Deb and her son attended the concert.
Question 28 of 50. Carlos is single and required to file a return. During the year, he received $900 in interest from a certificate of deposit held with his local bank. He also received $725 in interest from U.S. Treasury securities and $300 in municipal bond interest. Where on his tax return will Carlos report this income? Form 1099-INT. Directly on Form 1040, page 1. The Qualified Dividends and Capital Gain Tax Worksheet. Schedule B. Mark for follow up
Data: Heather reported $6,200 of interest income from corporate bonds she received as gifts from her father over the last several years. This was Heather’s only source of income for the year. Heather made $1,000 of estimated tax payments during the year. Question: Determine Heather’s federal income taxes due or payable Thx
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Assume that John's marginal tax rate is 37 percent. If a city of Austin bond pays 6.5 percent interest, what interest rate would a corporate bond have to offer for John to be indifferent between the two bonds? Question 4 Marc, & married taxpayer, earns 5640,000 in taxable income and $8,300 in interest from an investment in city of Birmingham bonds. Using the U.S. tax rate schedule for year 2022, what is his current marginal tax rate? (Use tax rate schedule.)
Marlene, a cash basis taxpayer, invests in Series EE U.S. government savings bonds and bank certificates of deposit (CDs). Determine the tax consequences of the following on her 2019 gross income: a. On September 30, 2019, she cashed in Series EE bonds for 10,000. She purchased the bonds in 2009 for 7,090. The yield to maturity on the bonds was 3.5%. b. On July 1, 2018, she purchased a CD for 10,000. The CD matures on June 30, 2020, and will pay 10,816, thus yielding a 4% annual return. c. On July 1, 2019, she purchased a CD for 10,000. The maturity date on the CD was June 30, 2020, when Marlene would receive 10,300.
Lisa records nonrefundable Federal income tax credits of 65,000 for the year. Her regular income tax liability before credits is 190,000, and her TMT is 150,000. a. What is Lisas AMT? b. What is Lisas regular income tax liability after credits?
PERSONAL TAXES Joe and Jane Keller are a married couple who file a joint income tax return, where the tax rates are based on the tax tables presented in the chapter. Assume that their taxable income this year was 165,000. a. What is their federal tax liability? b. What is their marginal tax rate? c. What is their average tax rate?
Accounting 1.Jake pays $8,500 in deductible property taxes. His marginal tax rate is 31%, his effective tax rate is 26% and his nominal average tax rate is 28%. What is Jake's tax savings from paying the property tax? 2.Mike and Liz file a joint return in 2021. AGI is 64,000 and they have $27,000 of itemized deductions. Mike and Liz are both 65. What is their taxable income for 2021? a. $35,500 b. $36,200 c. $37,000 d. $38,900 e. None of the answers provided is correct.
K Capital Gains Tax. Joel purchased 100 shares of stock for $29 per share. During the year, he received dividend checks amounting to $229. Joel recently sold the stock for $54 per share. Joel is in a 25% tax bracket. He would pay $625 in taxes if he held the stock for less than a year. How much would Joel save in taxes if he held the stock for more than a year, assuming he sold it for the same amount? If he held the stock for more than a year, the amount Joel would save in taxes is $. (Round to the nearest dollar.) M 'M
PERSONAL TAXES Susan and Stan Britton are a married couple who file a joint income tax return, where the tax rates are based on the tax tables presented in the chapter. Assume that their taxable income this year was $375,000. What is their federal tax liability? What is their marginal tax rate? What is their average tax rate?
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