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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Question
Chapter 4, Problem 37P
To determine
Write a letter to Person B and Person C explaining the tax effects of the $10,000 payments received.
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Alex, age 24, had an HSA account set up with her employer, Target, that had $5,000 in the account at the end of the year. She then quit her job in July and withdrew the funds. She had no qualifying medical expenses during 2022. Instead, she used the funds from the HSA to buy a used car she had wanted for a while. What is the tax consequence of this action?
Group of answer choices
Nothing. Taxpayers are allowed to withdraw from their HSA accounts at any time.
Her withdraw is prohibited and will result in a forfeiture of the funds.
Alex must pay income tax and a 6% penalty on the withdrawal.
Alex must pay income tax and a 20% penalty on the withdrawal.
Ana is a 41-year-old lawyer who has taken out a universal life insurance policy to protect her two children (ages 12 and 9) in the event of death. Each year, Ana chooses how much would like to contribute to the policy, as shown by the first row of the table below. The insurance company subtracts from this an administrative fee along with the cost of the death benefit (the portion of the policy) then puts the remainder into the cash value (or ) portion of the policy. This money earns interest at a rate of return. Based on the given information, calculate the amount that is added to the cash value portion of the policy in each of the first three years.
Year 1
Year 2
Year 3
Premium (annual contribution)
$2,834
$2,220
$1,757
Administrative fee
$80
$80
$80
Cost of death benefit
$100
$100
$100
Amount added to cash value
$
$
$
The cost of the death benefit portion of universal policies is only fixed for certain periods and rises with…
Maribeth and Rick are married and file jointly. Maribeth runs her own bakery and makes a net profit of $75,000 which she reports on her Schedule C. They pay $900 monthly for Maribeth’s health insurance coverage. Rick was unemployed until he found a job with the railroad in June. On August 1, 2022, Rick became eligible to participate in the company’s health insurance plan but declined coverage, preferring to stay with Maribeth’s plan. How much can Maribeth and Rick deduct in self-employed health insurance premiums for 2022?
Chapter 4 Solutions
Concepts in Federal Taxation 2019 (with Intuit ProConnect Tax Online 2017 and RIA Checkpoint 1 term (6 months) Printed Access Card)
Ch. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - Prob. 3DQCh. 4 - Prob. 4DQCh. 4 - Prob. 5DQCh. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 10DQ
Ch. 4 - Prob. 11DQCh. 4 - Prob. 12DQCh. 4 - Prob. 13DQCh. 4 - Prob. 14DQCh. 4 - Prob. 15DQCh. 4 - Prob. 16DQCh. 4 - Prob. 17DQCh. 4 - Prob. 18DQCh. 4 - Prob. 19DQCh. 4 - Prob. 20PCh. 4 - Prob. 21PCh. 4 - Prob. 22PCh. 4 - Prob. 23PCh. 4 - LO2 Herman inherits stock with a fair market value...Ch. 4 - LO2 Fatima inherits a rental property with a fair...Ch. 4 - Prob. 26PCh. 4 - Prob. 27PCh. 4 - Prob. 28PCh. 4 - Prob. 29PCh. 4 - Prob. 30PCh. 4 - Prob. 31PCh. 4 - Prob. 32PCh. 4 - Prob. 33PCh. 4 - Prob. 34PCh. 4 - Prob. 35PCh. 4 - Prob. 36PCh. 4 - Prob. 37PCh. 4 - Prob. 38PCh. 4 - Prob. 39PCh. 4 - Prob. 40PCh. 4 - Prob. 41PCh. 4 - Prob. 42PCh. 4 - Prob. 43PCh. 4 - Prob. 44PCh. 4 - Prob. 45PCh. 4 - Prob. 46PCh. 4 - Prob. 47PCh. 4 - Prob. 48PCh. 4 - Prob. 49PCh. 4 - Prob. 50PCh. 4 - Prob. 51PCh. 4 - Prob. 52PCh. 4 - Prob. 53PCh. 4 - Prob. 54PCh. 4 - Prob. 55PCh. 4 - Prob. 56PCh. 4 - Prob. 57PCh. 4 - Prob. 58PCh. 4 - Prob. 59PCh. 4 - Prob. 60PCh. 4 - Prob. 61PCh. 4 - Prob. 62PCh. 4 - Prob. 63PCh. 4 - Prob. 64PCh. 4 - Prob. 65IIPCh. 4 - Prob. 66IIPCh. 4 - Prob. 67IIPCh. 4 - In each of the following problems, identify the...Ch. 4 - In each of the following problems, identify the...Ch. 4 - In each of the following problems, identify the...Ch. 4 - Prob. 71IIPCh. 4 - Prob. 72IIPCh. 4 - Prob. 73IIPCh. 4 - Prob. 74IIPCh. 4 - Prob. 75IIPCh. 4 - Prob. 76IIPCh. 4 - Prob. 77TACh. 4 - Prob. 80TACh. 4 - Reggie receives a 2-year scholarship to Big...Ch. 4 - Prob. 83IPCh. 4 - Calculate Carmins adjusted gross income on her...Ch. 4 - Prob. 85DCCh. 4 - Marlo and Merlins son, Alex, needs 20,000 to start...Ch. 4 - Prob. 87TPCCh. 4 - Prob. 88TPCCh. 4 - Prob. 89EDC
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