Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 10, Problem 40P
LO.2, 3, 4, 5, 6, 7 For calendar year 2019, Stuart and Pamela Gibson file a joint return reflecting AGI of $350,000. Their itemized deductions are as follows:
Calculate the amount of itemized deductions the Gibsons may claim for the year.
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For calendar year 2019, Stuart and Pamela Gibson file a joint return reflecting AGI of $375,900. Their itemized deductions are as follows. Note: All expenses are before any applicable limitations, unless otherwise noted.
Casualty loss in a Federally declared disaster area after $100 floor (not covered by insurance)
$53,200
Home mortgage interest (loan qualifies as acquisition indebtedness)
21,280
Credit card interest
1,064
Property taxes on home
15,960
Charitable contributions
29,260
State income tax
18,620
Tax return preparation fees
1,596
Round your final answers to the nearest whole dollar.
Calculate the amount of itemized deductions the Gibsons may claim for the year.
For calendar year 2023, Stuart and Pamela Gibson file a joint return reflecting AGI of
$355,100. Their itemized deductions are as follows: Note: All expenses are before any
applicable limitations, unless otherwise noted.
Casualty loss in a Federally declared disaster
area (not covered by
insurance; before the 10%-of-AGI limitation
but after the $100 floor)
Home mortgage interest (loan qualifies as
acquisition indebtedness)
Credit card interest
Property taxes on home
Charitable contributions
State income tax
Tax return preparation fees
$72,400
28,960
1,448
21,720
39,820
25,340
2,172
Round your final answers to the nearest whole dollar.
Calculate the amount of itemized deductions the Gibsons may claim for the year.
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Daniel's standard deduction for 2023 is $13,850.
a. Classify the following expenses as either "Deductible for AGI", "Deductible from AGI", or "Not deductible".
Payment of alimony (divorce finalized in March 2021)
Mortgage interest on residence
Property tax on residence
Contribution to traditional IRA (assume the amount is fully
deductible)
Contribution to United Church
Loss on the sale of real estate (held for investment)
Medical expenses
State income tax
Federal income tax
What is Daniel's gross income and his AGI?
Gross income: $
AGI: $
b. Should Daniel itemize his deductions from AGI or take the standard deduction?
Because Daniel's total itemized deductions (after any limitations) are $
he would benefit from
10:34
Chapter 10 Solutions
Individual Income Taxes
Ch. 10 - Prob. 1DQCh. 10 - Prob. 2DQCh. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - LO.2 David, a sole proprietor of a bookstore, pays...Ch. 10 - LO.2 Jayden, a calendar year taxpayer, paid 16,000...Ch. 10 - Prob. 7DQCh. 10 - Prob. 8DQCh. 10 - Prob. 9DQCh. 10 - Prob. 10DQ
Ch. 10 - LO.5 Thomas purchased a personal residence from...Ch. 10 - Prob. 12DQCh. 10 - Prob. 13DQCh. 10 - LO.6, 8 William, a high school teacher, earns...Ch. 10 - LO.2 Barbara incurred the following expenses...Ch. 10 - Prob. 16CECh. 10 - Prob. 17CECh. 10 - Prob. 18CECh. 10 - Prob. 19CECh. 10 - Prob. 20CECh. 10 - Prob. 21CECh. 10 - Prob. 22PCh. 10 - Prob. 23PCh. 10 - LO.2 Paul suffers from emphysema and severe...Ch. 10 - LO.2 For calendar year 2019, Jean was a...Ch. 10 - LO.2 During 2019, Susan incurred and paid the...Ch. 10 - In May, Rebeccas daughter, Isabella, sustained a...Ch. 10 - Prob. 28PCh. 10 - Prob. 29PCh. 10 - Prob. 30PCh. 10 - Prob. 31PCh. 10 - Prob. 32PCh. 10 - Prob. 33PCh. 10 - Prob. 34PCh. 10 - On December 27, 2019, Roberta purchased four...Ch. 10 - Prob. 36PCh. 10 - Prob. 37PCh. 10 - Prob. 38PCh. 10 - LO.2, 3, 4, 5, 6, 7 Linda, who files as a single...Ch. 10 - LO.2, 3, 4, 5, 6, 7 For calendar year 2019, Stuart...Ch. 10 - Prob. 41CPCh. 10 - Marcia, a shareholder in a corporation with stores...Ch. 10 - Prob. 4RPCh. 10 - Prob. 1CPACh. 10 - Prob. 2CPACh. 10 - Prob. 3CPACh. 10 - Kurstie received a 800 state income tax refund...Ch. 10 - Which of the following would preclude a taxpayer...Ch. 10 - Prob. 6CPA
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- Renee and Sanjeev Patel, who are married, reported taxable income of 1,008,000 for 2019. They incurred positive AMT adjustments of 75,000 and tax preference items of 67,500. The couple itemizes their deductions. a. Compute the Patels AMTI for 2019. b. Compute their tentative minimum tax for 2019.arrow_forwardRobin's financial records from 2020 show the following information from the forms she received: Interest income from bank CD's: $1,600 Taxable annuity payment total: $3,200 City ad valorem property on investments: $240 Investment interest expense: $5,600 Calculate Robin's net investment income and her current investment deduction. How is a deduction for any potential excess investment interest treated? Why is it treated this way?arrow_forwardDuring 2020, Catherine had the following deductions and adjustments to income: Schedule C (Form 1040) expenses of $15,000, standard deduction of $12,400, $8,400 alimony paid, and $3,700 casualty loss attributable to a federal disaster area. Compute her total nonbusiness deductions for NOL purposes. $15,000 $18,700 $20,800 $27,400arrow_forward
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