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What was Kathryn?s Taxable Income for 2014

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Question;What was Kathryn?s Taxable Income for 2014? Kathryn is single and has TWO dependent children, Shicquonna and Andrea. Assume further that Kathryn?s 2014 AGI is $60,000 and that Kathryn had itemized deductions of $12,000.a. $60,000b. $48,000c. $40,100d. $36,15032. What was Catherine?s 2014 Net Operating Loss amount assuming that he had the following items listed on her incometax return?Business Income $52,000Interest income on personal investments $5,000Less: Business Expenses ($72,000)Less: Personal exemption ($3,950)Less: Non business deductions ($7,000)Loss shown on return ($25,950)a. $0b. $12,000c. $20,000d. $25,95033. Jasimon incurred the following expenses during 2014. Which expense is Jasimon LEAST likely to deduct as a medical expense (assume Jasimon itemizes and that Jasimon?s medical expenses will exceed 10.0% of Jasimon AGI)?a. Uninsured expenses relating to back surgeryb. Medical insurance premiums (purchased by Jasimon with Jasimon?s after-tax dollars)c. Travel expenses to obtain treatment at a clinic in Texas (assume that the potentially lifesaving procedure to be performed can only be performed at that particular clinic)d. Cosmetic surgery (to make Jasimon?s chin look more appealing)34. Alix contributes some common stock that Alix held long-term to a public charity. On the date of the contribution, Alix?s basis in the common stock was $2,000 and the fair market value was $15,000. What is the amount of charitable contribution allowed (before considering any potential percentage limitation)?a. $15,000b. $13,000c. $2,000d. $035. Timothy sold stock Timothy owned in a small business that was formed as a corporation. Timothy sold the stock to Danita. Which Section of the U.S. Tax Code might allow Timothy to convert what would otherwise be a capital loss into an ordinary loss?a. Section 1244b. Section 1221c. Section 1202d. None of the above36. Kevin?s business incurred a casualty loss in 2014. Immediately before the casualty, her business truck had an adjusted basis of $45,000 and a fair market value of $40,000. Immediately after the casualty, the truck had a fair market value of $10,000. Because of the truck damage, Kevin?s insurance company provided $10,000 as a reimbursement in 2014. What was Kevin?s 2014 casualty loss deduction?a. $45,000b. $30,000c. $20,000d. Unknown (because we must know Kevin's AGI)37. In 2005, Mary (a single taxpayer) loaned $30,000 to her friend Nicole. In 2014, Nicole declared bankruptcy, with the result that the debt became totally worthless. How should Mary treat the loss relating to this debt (assume that the debt is a non business debt that is a bona fide debt that arose from a debtor-creditor relationship)?a. As an itemized deductionb. As a short-term capital lossc. As a long-term capital lossd. Mary may not take any deduction relating to the debt (it is a non business debt)38. Assume the facts stated in the prior question. Assume further that Mary has no other capital gains or losses in 2014 (or any prior years). What is the maximum amount (related to the bad debt) that Mary can deduct in 2014?a. $30,000b. $27,000c. $3,000d. $039. Assume the facts stated in the prior two questions. Assume further that for 2014 Mary will offset her wages (with any deduction related to the debt) to the maximum extent permitted by law. What is the amount of Mary?s capital loss carryover to 2015?a. $30,000b. $27,000c. $3,000d. $040. Which of the following is most likely deductible FOR AGI (i.e., PRE-AGI)?a. Amounts paid for federal income taxesb. Amounts paid for unreimbursed moving expensesc. Amounts paid for property taxesd. Each of the above items would be deducted FROM AGI

 

Paper#48060 | Written in 18-Jul-2015

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