tax prob-Cecil C. Seymour is a 64-year-old widower. He had income for 2013 as follows: Pension from for
Question;60. Cecil C. Seymour is a 64-year-old widower. He had income for 2013 as follows:Pension from former employer $39,850Interest income from Alto National Bank 5,500Interest income on City of Alto bonds 4,500Dividends received from IBM 2,000Collections on annuity contract he purchased from Great Life Insurance 5,400Social Security benefits 14,000Rent income on townhouse 9,000The cost of the annuity was $46,800, and Cecil was expected to receive a total of 260 monthly payments of $450. Cecil has received 22 payments through 2013.Cecil?s 40-year-old daughter, Sarah C. Seymour, borrowed $60,000 from Cecil on January2, 2013. She used the money to start a new business. Cecil does not charge her interest because she could not afford to pay it, but he does expect to eventually collect the principal. Sarah is living with Cecil until the business becomes profitable. Except for housing, Sarah provides her own support from her business and $1,600 in dividends on stocks that she inherited from her mother.Other relevant information is presented below:? Cecil?s Social Security number: 123-45-6785? Address: 3840 Springfield Blvd., Alto, GA 30510? Sarah?s Social Security number: 123-45-6784? Expenses on rental townhouse:Utilities $2,800Maintenance 1,000Depreciation 2,000Real estate taxes 750Insurance 700? State income taxes paid: $3,500? County personal property taxes paid: $2,100? Payments on estimated 2013 Federal income tax: $5,900? Charitable contributions of cash to Alto Baptist Church: $6,400? Federal interest rate: 6%? Sales taxes paid: $912Compute Cecil?s 2013 Federal income tax payable (or refund due).
Paper#41290 | Written in 18-Jul-2015Price : $28