Terrance and Louise are married and file a joint return, and they have one daughter who is their dependent. Terrance and Louise cashed in Series EE savings bonds for $7,000 and used all of the proceeds towards their daughter's college tuition. They originally purchased the bonds for $4,900. What amount of interest income from the bonds may Terrance and Louise exclude from their gross income if their AGI is $163,000? Round calculations to the nearest whole dollar.

Terrance and Louise are married and file a joint return, and they have one daughter who is their dependent. Terrance and Louise cashed in Series EE savings bonds for $7,000 and used all of the proceeds towards their daughter's college tuition. They originally purchased the bonds for $4,900. What amount of interest income from the bonds may Terrance and Louise exclude from their gross income if their AGI is $163,000? Round calculations to the nearest whole dollar.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 47P

See similar textbooks

Similar questions

Cecil cashed in a Series EE savings bond with a redemption value of $18,000 and an original cost of $12,600. For each of the following independent scenarios, calculate the amount of interest Cecil will include in his gross income assuming he files as a single taxpayer: a. Cecil plans to spend all of the proceeds to pay his son's tuition at State University. Cecil's son is a full-time student, and Cecil claims his son as a dependent. Cecil estimates his modified adjusted gross income at $65,400. Amount of interest to be included in gross income is: $0 b. Assume the same facts in part (a), except Cecil plans to spend $5,400 of the proceeds to pay his son's tuition at State University, and Cecil estimates his modified adjusted gross income at $61,200. Amount of interest to be included in gross income is: _____________
Cecil cashed in a Series EE savings bond with a redemption value of $15,500 and an original cost of $10,850. For each of the following independent scenarios, calculate the amount of interest Cecil will include in his gross income assuming he files as a single taxpayer: Note: Leave no answer blank. Enter zero if applicable. Required: a. Cecil plans to spend all of the proceeds to pay his son's tuition at State University. Cecil's son is a full-time student, and Cecil claims his son as a dependent. Cecil estimates his modified adjusted gross income at $65,800. b. Assume the same facts in part (a), except Cecil plans to spend $4,650 of the proceeds to pay his son's tuition at State University, and Cecil estimates his modified adjusted gross income at $63,100. Complete this question by entering your answers in the tabs below. Required A Required B Cecil plans to spend all of the proceeds to pay his son's tuition at State University. Cecil's son is a full-time student, and Cecil claims his…
Cecil cashed in a Series EE savings bond with a redemption value of $13,000 and an original cost of $9,100. For each of the following independent scenarios, calculate the amount of interest Cecil will include in his gross income assuming he files as a single taxpayer: Note: Leave no answer blank. Enter zero if applicable. Required: Cecil plans to spend all of the proceeds to pay his son's tuition at State University. Cecil's son is a full-time student, and Cecil claims his son as a dependent. Cecil estimates his modified adjusted gross income at $53,400.
9:) Cecil cashed in a Series EE savings bond with a redemption value of $16,000 and an original cost of $11,200. For each of the following independent scenarios, calculate the amount of interest Cecil will include in his gross income assuming he files as a single taxpayer: (Leave no answer blank. Enter zero if applicable.) A:) Cecil plans to spend all of the proceeds to pay his son's tuition at State University, Cecil's son is a full- time student, and Cecil claims his son as a dependent. Cecil estimates his modified adjusted gross income at $61,700. Amount of interest to be included in gross income: B:) Assume the same facts in part (a), except Cecil plans to spend $4,800 of the proceeds to pay his son's tuition at State University, and Cecil estimates his modified adjusted gross income at $57,500. Amount of interest to be included in gross income:
Chris 45 and Alison 46 are marries and they will file a joint return . During the year they earned 82500 wages. They also jad investment income consisting of 200 interest income from a savng account 350 interest income from a certificate of deposit held with another bank 250 interest income from a us treasury 500 tax exempt interest income from municipal bond and 1700 in ordinart dividends from a mutual fund what amout will cris and allison report for taxable interest in their 1040
Please explain every step. Thank you
Matthew borrows $250,000 to invest in bonds. During the current year, his interest on the loan is $30,000. Matthew’s taxable interest income from the bonds is $10,000. This is Matthew’s only investment income. a. Calculate Matthew’s itemized deduction for investment interest expense for this year. ? _____________ b. Is Matthew entitled to a deduction in future years? Explain ____________
Matthew borrows $265,000 to invest in bonds. During the current year, his interest on the loan is $26,500. Matthew's taxable interest income from the bonds is $15,900. This is Matthew's only investment income and he has no other investment expenses other than the interest on the loan. a. Calculate Matthew's itemized deduction for investment interest expense for this year. b. Is Matthew entitled to a deduction (related to the investment interest expense) in future years?Yes , the unused deduction of _______ may be carried forward as an investment interest deduction in future years
Godo
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.
Ellie purchases an insurance policy on her life and names her brother, Jason, as the beneficiary. Ellie pays 32,000 in premiums for the policy during her life. When she dies, Jason collects the insurance proceeds of 500,000. As a result, how much gross income does Jason report?
Leroy and Amanda are married and have three dependent children. During the current year, they have the following income and expenses: Salaries 120,000 Interest income 45,000 Royalty income 27,000 Deductions for AGI 3,000 Deductions from AGI 9,000 a. What is Leroy and Amandas current year taxable income and income tax liability? b. Leroy and Amanda would like to lower their income tax. How much income tax will they save if they validly transfer 5,000 of the interest income to each of their children? Assume that the children have no other income and that they are entitled to a 1,050 standard deduction.