He contributed $30,000 to Roth IRA 6 years ago. The balanceRyan is single and 50 year old.of the account before the distribution was $40,000. He distributed $20,000 this year because hepurchased a new car. Assume Daniel is in the 24% bracket.Daniel's must pay a 10% penalty of $2000 on the $20,0000 distribution because he wasunder age 59 1/2.Select one:OTrueoFalseA loss incurred on the sale or exchange of property is deductible only if the property is used in atrade or business or held for investment.Select one:TrueFalseSheldon does not itemize his deductions but instead claims the standard deduction. Therefore,Sheldon is not eligible for the QBI deduction.Select one:TrueFalseTheresa bought a car (5-year property) for $10,000 for her business on 1/3/2019. She used it100% for her business. She sold it 4/5/2021 for $12,000. Her depreciation for 2021 is:a $960b. $1152c. $1920 Sarah is 57 years old and separated from service from Walker Furniture. She contributed$10,000 to a traditional 401k plan. The balance of the account before the distribution was$50,000. She distributed $20,000 this year because she lost her job and needed money.Assume Sarah is in the 22% bracket.Sarah's tax is $4400 ($20,000 x 22%) plus penalty of $2,000 ($20,000 x 10%)Select one:TrueFalseGila purchased a rental house on 5/1/2020 for $300,000. She sold the rental house on9/20/2021. How many months of depreciation does she take in the year of the sale?a 1/2 yearob. 3.5 monthsC. 8.5 monthsod. 9.5 monthsThe IRS generally prefers that a taxpayer be treated as an employee, rather than being treatedas an independent contractor.Select oneTrueFalse

Here asked for multi question we will solve for first three sub part question for you. If you need…

Ryan is single and 50 year old. of the account before the distribution was $40,000. He distributed $20,000 this year because he purchased a new car. Assume Daniel is in the 24% bracket. He contributed $30,000 to Roth IRA 6 years ago. The balance Daniel's must pay a 10% penalty of $2000 on the $20,000 distribution because he was under age 59 1/2. Select one: OTrue OFalse

Ryan is single and 50 year old. of the account before the distribution was $40,000. He distributed $20,000 this year because he purchased a new car. Assume Daniel is in the 24% bracket. He contributed $30,000 to Roth IRA 6 years ago. The balance Daniel's must pay a 10% penalty of $2000 on the $20,000 distribution because he was under age 59 1/2. Select one: OTrue OFalse

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 2DQ

See similar textbooks

Similar questions

Desmond is 25 years old, and he participates in his employer's 401(k) plan. During the year, he contributed $3,000 to his 401(k) account. What is Desmond's saver's credit in each of the following alternative scenarios? (Use Exhibit 13-8) Note: Leave no answer blank. Enter zero if applicable. a. Desmond is not married and has no dependents. His AGI after deducting his 401(k) contribution is $40,000. b. Desmond is not married and has no dependents. His AGI after deducting his 401(k) contribution is $17,500. c. Desmond files as a head of household and has an AGI of $44,000. d. Desmond and his spouse file jointly and report an AGI of $30,000 for the year.
Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of $12,900 to the Roth IRA ($4,300 a year). The current value of the Roth IRA is $17,500. In the current year, Sherry withdraws $15,200 of the account balance to purchase a car. Assuming Sherry's marginal tax rate is 24 percent, how much of the $15,200 withdrawal will she retain after taxes to fund her car purchase?
George (age 42 at year-end) has been contributing to a traditional IRA for years (all deductible contributions), and his IRA is now worth $25,000. He is planning on converting the entire balance to a Roth IRA account. George's marginal tax rate is 24 percent. Note: Leave no answers blank. Enter zero if applicable. Problem 13-76 Part b (Static) b. What are the tax consequences to George if he takes $25,000 out of the traditional IRA, pays the taxes due from the traditional IRA distribution, and contributes what's left from the distribution to the Roth IRA one week after receiving the distribution? Tax payable Penalty Total $ $ A 6,000 (600) 5,400
Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of $13,200 to the Roth IRA ($4,400 a year). The current value of the Roth IRA is $21,100. In the current year, Sherry withdraws $18,800 of the account balance to purchase a car. Assuming Sherry's marginal tax rate is 24 percent, how much of the $18,800 withdrawal will she retain after taxes to fund her car purchase? Amount of withdrawal Non-taxable amount Amount subject to tax $ Tax rate % Penalty rate Таx Penalty After tax withdrawal retained
George (age 42 at year-end) has been contributing to a traditional IRA for years (all deductible contributions), and his IRA is now worth $25,000. He is planning on converting the entire balance to a Roth IRA account. George's marginal tax rate is 24 percent. Note: Leave no answers blank. Enter zero if applicable. Problem 13-76 Part a (Static) a. What are the tax consequences to George if he takes $25,000 out of the traditional IRA and contributes the entire amount into a Roth IRA one week after receiving the distribution? Tax payable Penalty Total $ SA 6,000 2,500 8,500
Caleb is age 51 and works for Helena Corporation, where he earned $110,000. Celeste (age 48), his wife, does not work outside the home and has no earned income. Caleb and Celeste file a married, filing joint tax return. Caleb contributed $15,000 to his 401k account with Helena Corporation. What is the maximum Cáleb can contribute to his Roth IRA and what is the maximum Celeste can contribute to her Roth IRA for 2020 (I need two answers; one for each spouse)?
Mabel is 45 and earned $30,000 in 2018. If she contributed $6,000 to her traditional IRA, what would be her excise penalty? . Hannah, age 56, earned $58,000 in 2018. She is also a participant in a qualified plan to which she contributed $18,500. How much can she contribute to a traditional IRA in 2018? $6,500 b. $5,500 c. $0 she is ineligible d. $7,000 In question 3 above, would her contribution to a traditional IRA be tax-deductible? Yes b. No If you own a Roth IRA, are you subject to Required Minimum Distributions? Yes b. No Bernice is age 54 and her granddaughter, age 18, will be attending UMSL in the Fall 2018. Bernice would like to withdraw $15,000 from her traditional IRA to pay for some of her granddaughter’s college expenses. She asks if this withdrawal can be made without a 10% penalty. You tell her: No way b. no 10% penalty c. tax on withdrawal and 10% penalty d. none of these answers. Gus is 72 and works part-time earning $16,000 per year. He asks you whether he…
1.
George (age 42 at year-end) has been contributing to a traditional IRA for years (all deductible contributions), and his IRA is now worth $25,000. He is planning on converting the entire balance to a Roth IRA account. George's marginal tax rate is 24 percent. a. What are the tax consequences to George if he takes $25,000 out of the traditional IRA and contributes the entire amount into a Roth IRA one week after receiving the distribution? Tax Payable=? Penalty=? b. What are the tax consequences to George if he takes $25,000 out of the traditional IRA, pays the taxes due from the traditional IRA distribution, and contributes what's left from the distribution to the Roth IRA one week after receiving the distribution? Tax Payable=? Penalty=? c. What are the tax consequences to George if he takes $25,000 out of the traditional IRA, keeps $10,000 to pay taxes and to make a down payment on a new car, and contributes what's left from the distribution to the Roth IRA one week after receiving…
This fall Millie finally repaid her student loan. She originally borrowed the money to pay tuition several years ago when she attended at State University (a qualified educational institution). This year Millie paid a total of $2,400 of interest on the loan. If Millie files single and reports $80,000 of income and no other items of income or expense how much of the interest can she deduct? Millie can deduct $2,400 for AGI. O Millie can deduct $1,600 for AGI. Millie can deduct $2,400 as an itemized deduction. O Millie can deduct $800 for AGI. None- the tuition is not deductible.
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: $5,000 · Pre-Tax Cuts & Jobs Act Alimony she paid to her ex-husband: $10,000 · Medical Expenses: $6,000 What is Amy’s Adjusted Gross Income (AGI)? Group of answer choices $29,000. $34,000. $35,000. $39,000.
Paul Barrone is a graduate student at State University. His 10-year-old son, Jamie, lives with him, and Paul is Jamies sole support. Pauls wife died in 2018, and Paul has not remarried. Paul received 320,000 of life insurance proceeds (related to his wifes death) in early 2019 and immediately invested the entire amount as shown below. Paul had 42,000 of taxable graduate assistant earnings from State University and received a 10,000 scholarship. He used 8,000 of the scholarship to pay his tuition and fees for the year and 2,000 for Jamies day care. Jamie attended Little Kids Daycare Center, a state-certified child care facility. Paul received a statement related to the Green bonds saying that there was 45 of original issue discount amortization during 2019. Paul maintains the receipts for the sales taxes he paid of 735. Paul lives at 1610 Cherry Lane, Bradenton, FL 34212, and his Social Security number is 111-11-1111. Jamies Social Security number is 123-45-6789. The university withheld 2,000 of Federal income tax from Pauls salary. Paul is not itemizing his deductions. Part 1Tax Computation Compute Pauls lowest tax liability for 2019. Part 2Tax Planning Paul is concerned because the Green bonds were worth only 18,000 at the end of 2019, 5,000 less than he paid for them. He is an inexperienced investor and wants to know if this 5,000 is deductible. The bonds had original issue discount of 2,000 when he purchased them, and he is curious about how that affects his investment in the bonds. The bonds had 20 years left to maturity when he purchased them. Draft a brief letter to Paul explaining how to handle these items. Also prepare a memo for Pauls tax file.