Ralph has total income of $53 000. He has business expenses of $18 000, 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 communitycollege. He has a basic personal amount of $12 298. Compute Ralph's taxable income for the current year.

The percentage of an individual's or entity's income that is liable to federal taxes is referred to…

Answered: Ralph has total income of $53 000. He…

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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Mario, a single taxpayer with two dependent children, has the following items of income and expense during 2020: Gross receipts from business $144,000 Business expenses 180,000 Net capital gain 22,000 Interest income 3,000 Itemized deductions (state taxes, residence interest, and contributions) 24,000 a. Determine Mario's taxable income or loss for 2020. Adjusted gross income Less: itemized deductions Less: Deduction for qualified business income Loss b. Indicate which items are adjustments to taxable income or loss when computing an NOL. Business receipts Business Expenses Net capital gain Interest income Itemized deductions c. Determine Mario's NOL for 2020. Mario's NOL is ?
Alan is 63 years old. He received a T4A with $5,000 in Box 16. His only other income last year was from CPP and investments. Can Alan claim the pension income amount on his tax return?
Alma Algonquin is a single taxpayer and operates Alma's Almond Products as a sole proprietor. For 2020, Alma's Almond Products reports $65,000 in gross receipts from business, and business expenses of $112,000. For her 2020 individual tax return, Alma reports these additional personal items: Interest Income LT Capital Gain LT Capital Loss Mortgage Interest State & Local Taxes $5,000 $18,000 ($4,100) $7,900 $8,100 A) Based on the above information, determine Alma Algonquin's taxable income for 2020. B) Based on the above information, determine Alma Algonquin's Net Operating Loss for 2020.
Dennis is a self-employed hair stylist who operates a salon in his home. The property taxes and interest allocated to the business amount to $5,000, maintenance and utilities allocated to the business total $2,100, and depreciation allocated to the business use of the home equals $3,100 for the current tax year. a. If Dennis' gross revenue after deducting supplies for his business is $5,900 for the current tax year, calculate his allowable deductions for the home office. b. If Dennis' gross revenue after deducting supplies for his business is $13,800, calculate his allowable deductions for the home office.
In the current year D withdrew $16,000 from his spousal RRSP and $9,000 from his TFSA. His spouse had contributed $4,000 to the plan in each of the last six years but not in the current year. What amount is included in D’s income for tax purposes in the current year?
During the year, Mitchell, a single taxpayer, gave the following gifts: $10,000 cash to his nephew $20,000 tuition paid for his 24-year-old daughter, paid directly to the State University $20,000 cash to his brother 50 shares of stock to his niece valued at $200 a share Assume an annual gift exclusion of $17,000. In filing his annual gift tax return, what is the amount of his taxable gifts?
Boyd Salzer, an unmarried individual, has $246,400 AGI consisting of the following items: Salary Interest income $ 214,000 3,800 Dividend income 11,100 Rental income from real property 17,500 1. Compute Mr. Salzer's Medicare contribution tax. 2. Compute the Medicare contribution tax if Boyd Salzer files a joint income tax return with his wife Harriet.
Rachel, a single taxpayer, operates a construction business as a sole proprietor. This year, Rachel earned $225,000 of qualified business income after paying $40,000 of wages to her employees. The unadjusted basis of her business property totals $10,000. Rachel's taxable income before the deduction for qualified business income is $212,300. What is the amount of her QBI deduction? Group of answer choices $25,000 $15, 100 $29,900 $42,460 $45,000
Theo, a single taxpayer, actively participates in a rental real estate activity. During the year, his total rental real estate inorme Was $25,000. His only other income for the year was $180,000 in wages. He does not have any adjustments to incomement does he have any expenses allocable to investment income. How much of Theo's income is subject to the net investment A. $0 B. $5,000 C.$25,000 D. $205,000
Aiden is married and has salary income of $80,000 and total itemized deductions is $30,000. During the year, he sold two investments resulting in a $5,000 long-term capital gain and a $15,000 short-term capital loss. He calculated his AGI to be $70,000 (80,000 -10,000) and his taxable income to be $40,000 (70,000-30,000). Based on the tax formula and the net capital loss rules, comment on whether or not the adjusted gross income and taxable income are correct. Explain and provide support for your position.
Barry Kline, age 45, is an unmarried taxpayer. During the current tax year he had received wages of $45,000. Barry also paid his ex-wife alimony from a 2021 divorce of $9,000. Barry has no dependents had itemized deductions of $7,500. Compute the amount of his taxable income. Adjusted Gross Income? Standard Deduction? Taxable Income?
In each of February 2005, 2006 and 2007, Lyle made an annual contribution of $6,750 into a spousal RRSP. He did not make any RRSP contributions in 2008 or 2009 because of tight finances. Lillian did not make any contributions. In April 2009, Lyle's spouse, Lillian, withdrew $20,000 from a spousal RRSP under which she is the annuitant and Lyle is the contributor. What income tax consequences are associated with the $20,000 withdrawal? $20,000 is taxable to Lillian $20,000 is taxable to Lyle $6,750 is taxable to Lillian and $13,250 is taxable to Lyle $6,750 is taxable to Lyle and $13,250 is taxable to Lillian DATA SHEET OAS recovery tax 2017 income $74,788 - 121,314 OAS recovery tax 2018 income $75,910 123,386 2016 Money Purchase Limit $26,010 2017 Money Purchase Limit S26,230 2021 RRSP$ Limit $27,830 2022 RRSP S Limit $29,210 2018 OAS $586.66 2017 OAS $583.74 2018 CPP $1.134 17

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