South-Western Federal Taxation 2019: Individual Income Taxes (Intuit ProConnect Tax Online 2017 & RIA Checkpoint 1 term (6 months) Printed Access Card)
42nd Edition
ISBN: 9781337702546
Author: James C. Young, William H. Hoffman, William A. Raabe, David M. Maloney, Annette Nellen
Publisher: Cengage Learning
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Question
Chapter 12, Problem 42P
To determine
Compute the amount that W must recognize as AMT adjustment.
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Barbara is single and owns a home in the city, which is her primary residence. She also owns a cottage at the beach,
which she treats as a vacation home. In April 2021, she borrowed $97,500 on a home equity loan and used the proceeds
to pay off credit card obligations and other debt. She paid the following in 2021:
Mortgage interest (personal residence)
Mortgage interest (cottage)
Interest on the home equity loan
Interest on credit card
Mortgage interest for residence
Vacation cottage
Home equity loan
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Interest
Required:
Calculate any AMT adjustment concerning interest in 2021.
Note: Input all the values as positive numbers. Leave no cells blank - be certain to enter "0" wherever required.
Regular Taxable
Interest
Deduction
$
$ 29,250
15,600
9,750
4,875
0 $
AMT
Adjustment
Check my work
0 $
0
Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo:
Mortgage interest
Property taxes
Insurance
Repairs & maintenance
Utilities
Depreciation
$ 7,925
2,760
2,950
1,875
4,400
16,875
During the year, Alexa rented out the condo for 100 days and received $23,800 in gross rental receipts. She did not use the condo at
all for personal purposes during the year. Alexa's AGI from all sources other than the rental property is $120,000. Alexa has no sources
of passive income. (Leave no answer blank. Enter zero if applicable.)
What effect does the rental activity have on Alexa's AGI? Alexa makes all decisions with respect to the property.
AGI
Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo:
Mortgage interest
Property taxes
$7,925
2,760
Insurance
2,950
TULE
Repairs & maintenance
1,875
Utilities
4,400
16,875
Depreciation
Ce
During the year, Alexa rented out the condo for 100 days and received $23,800 in gross rental receipts. She did not use the condo at
all for personal purposes during the year. Alexa's AGI from all sources other than the rental property is $120,000. Alexa has no sources
of passive income. (Leave no answer blank. Enter zero if applicable.)
What effect does the rental activity have on Alexa's AGI? Alexa makes all decisions with respect to the property.
AGI
1.01
increases by
decreases by
no effect
Chapter 12 Solutions
South-Western Federal Taxation 2019: Individual Income Taxes (Intuit ProConnect Tax Online 2017 & RIA Checkpoint 1 term (6 months) Printed Access Card)
Ch. 12 - Kelly was promoted and received a substantial...Ch. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Can any nonrefundable credits, other than the...Ch. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQ
Ch. 12 - Prob. 11DQCh. 12 - Prob. 12DQCh. 12 - Prob. 13DQCh. 12 - Prob. 14DQCh. 12 - Prob. 15DQCh. 12 - Prob. 16DQCh. 12 - Prob. 17DQCh. 12 - During the year, Rachel earned 18,000 of interest...Ch. 12 - Prob. 19CECh. 12 - Prob. 20CECh. 12 - Prob. 21CECh. 12 - Prob. 22CECh. 12 - Prob. 23CECh. 12 - Prob. 24CECh. 12 - Prob. 25CECh. 12 - Prob. 26PCh. 12 - Prob. 27PCh. 12 - Prob. 28PCh. 12 - Prob. 29PCh. 12 - Lisa records nonrefundable Federal income tax...Ch. 12 - Prob. 31PCh. 12 - Prob. 32PCh. 12 - Prob. 33PCh. 12 - Prob. 34PCh. 12 - Prob. 35PCh. 12 - Prob. 36PCh. 12 - Prob. 37PCh. 12 - Prob. 38PCh. 12 - Prob. 39PCh. 12 - Prob. 40PCh. 12 - Prob. 41PCh. 12 - Prob. 42PCh. 12 - Prob. 43PCh. 12 - Prob. 44PCh. 12 - Prob. 45PCh. 12 - Prob. 46PCh. 12 - Prob. 47PCh. 12 - Prob. 48PCh. 12 - Prob. 49PCh. 12 - Prob. 50PCh. 12 - Prob. 51PCh. 12 - Prob. 52PCh. 12 - Prob. 53PCh. 12 - Prob. 54CPCh. 12 - Prob. 55CPCh. 12 - Prob. 2RPCh. 12 - Prob. 3RPCh. 12 - Prob. 1CPACh. 12 - Prob. 2CPACh. 12 - Carol reports taxable income of 48,000. Included...Ch. 12 - Prob. 4CPA
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