Concepts in Federal Taxation 2019 (with Intuit ProConnect Tax Online 2017 and RIA Checkpoint 1 term (6 months) Printed Access Card)
26th Edition
ISBN: 9781337702621
Author: Kevin E. Murphy, Mark Higgins
Publisher: Cengage Learning
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Chapter 2, Problem 32P
To determine
Prepare a letter to Person E by explaining whether Person E is taxed on the $12,000 received from E& M.
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Adrian is a salesperson who represents several wholesale companies. On January 2, 2019, she receives by mail a commission check from Ace Distributors in the amount of $10,000 and dated December 30, 2018. Adrian is concerned about the year in which the $10,000 is taxable. Although the check is dated 2018, she contends that it would have been unreasonable for her to drive the 50 miles to the Ace offices on a holiday to collect the check. Further, Adrian maintains that even if she had made the trip on a holiday to collect the check, by the time she returned home, her bank would have closed and she could not have received credit for the check until after the first of the year. Adrian would like you to determine whether she should include the $10,000 on her 2018 or 2019 tax return.
Terry worked for two employers during 2018. The amount of wages paid to Terry by both employers totaled $168,400 and the employers properly withheld both income and employment taxes. As a result of Terry’s two jobs:
a. Terry will receive a credit against his employment taxes in 2019
b. Terry will request a refund of overpaid employment taxes from his second employer
c. Terry will claim a credit for excess Social Security taxes on his 2018 income tax return
d. Terry will claim a credit for excess Social Security and Medicare taxes on his 2018 income tax returne. Terry will file a Form 843 with the Social Security Administration to claim back ex-cess withheld employment taxes
Rocco operates a beauty salon as a sole proprietorship. Rocco also owns and rents an apartment building. In 2023, Rocco
had the following income and expenses. You may assume that Rocco will owe $2,516 in self-employment tax on his salon
income, with $1,258 representing the employer portion of the self-employment tax. You may also assume that his divorce
from Svetlana was finalized in 2016.
Interest income
Salon sales and revenue
Salaries paid to beauticians
Beauty salon supplies
Alimony paid to his ex-wife, Svetlana
Rental revenue from apartment building
Depreciation on apartment building
Real estate taxes paid on apartment building
Real estate taxes paid on personal residence
Contributions to charity
a. Determine Rocco's AGI.
Note: Amounts to be deducted should be indicated by a minus sign.
Interest income
Salon revenue
Less: Salaries paid to beauticians
‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒
Operating income from salon
Apartment building revenue
Apartment building income
AGI
$ 11,565
86,560
45,330
23,420…
Chapter 2 Solutions
Concepts in Federal Taxation 2019 (with Intuit ProConnect Tax Online 2017 and RIA Checkpoint 1 term (6 months) Printed Access Card)
Ch. 2 - Prob. 1DQCh. 2 - Prob. 2DQCh. 2 - What is an arms-length transaction? What is its...Ch. 2 - Prob. 4DQCh. 2 - Prob. 5DQCh. 2 - Prob. 6DQCh. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Prob. 9DQCh. 2 - Prob. 10DQ
Ch. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 14DQCh. 2 - Prob. 15DQCh. 2 - Prob. 16DQCh. 2 - Prob. 17DQCh. 2 - Prob. 18PCh. 2 - Prob. 19PCh. 2 - Prob. 20PCh. 2 - Prob. 21PCh. 2 - Prob. 22PCh. 2 - Prob. 23PCh. 2 - Prob. 24PCh. 2 - Prob. 25PCh. 2 - Prob. 26PCh. 2 - Prob. 27PCh. 2 - Prob. 28PCh. 2 - Prob. 29PCh. 2 - Prob. 30PCh. 2 - Prob. 31PCh. 2 - Prob. 32PCh. 2 - Prob. 33PCh. 2 - Prob. 34PCh. 2 - Prob. 35PCh. 2 - Prob. 36PCh. 2 - Prob. 37PCh. 2 - Prob. 38PCh. 2 - Prob. 39PCh. 2 - Prob. 40PCh. 2 - Prob. 41PCh. 2 - Prob. 42PCh. 2 - Prob. 43PCh. 2 - Prob. 44PCh. 2 - Prob. 45PCh. 2 - Prob. 46PCh. 2 - Prob. 47PCh. 2 - Prob. 48PCh. 2 - Prob. 49PCh. 2 - Prob. 50PCh. 2 - Prob. 51PCh. 2 - Prob. 52PCh. 2 - Prob. 53PCh. 2 - Prob. 54PCh. 2 - Prob. 55PCh. 2 - Prob. 56PCh. 2 - Prob. 57PCh. 2 - Prob. 58PCh. 2 - Prob. 59PCh. 2 - Prob. 60PCh. 2 - Prob. 61PCh. 2 - Prob. 62PCh. 2 - Prob. 63IIPCh. 2 - Prob. 64IIPCh. 2 - Prob. 65IIPCh. 2 - Jerry and his wife, Joanie, own a successful...Ch. 2 - Prob. 67IIPCh. 2 - Prob. 68IIPCh. 2 - Prob. 69IIPCh. 2 - Prob. 70IIPCh. 2 - Prob. 71IIPCh. 2 - Prob. 79DCCh. 2 - Prob. 80DCCh. 2 - Prob. 81TPC
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