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##### Donald and Jamie rent out their residence in Dallas

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Question;13. Donald and Jamie rent out their residence in Dallas to friends for 10 days while they vacation in Europe. They collect \$1,500 of rental income. How is the rental income treated on their tax return? Explain14.Wilson and Joan, both in their 30's, file a joint income tax return for 2013. Wilson's wages are \$25,000 and Joan's wages are \$33,000 for the year. Their total adjusted gross income is \$58,000, and Joan is covered by a qualified pension plan at work but Wilson is not.a.What is the maximum amount that Wilson and Joan may each contribute to their Roth IRAs?b.If Joan's wages are \$110,000 for 2013, instead of \$33,000, and their adjusted gross income is \$135,000, (1) what is the maximum amount that Wilson and Joan may each deduct for contributions to their individual retirement accounts, and (2) what is the maximum amount they could each contribute to Roth IRAs instead? (show all work and label each answer clearly)15.Donald rents out his vacation home for 9 months and lives in his vacation home for the remainder of the year. His gross rental income for the current year is \$7,200. The expenses attributable to the vacation home for the entire year are as follows:Real estate taxes\$2,000Interest on mortgage loan4,000Utilities1,200Repairs/maintenance600Depreciation3,500What amount would Donald report as net income or loss from the rental of the vacation home?16.Phillip took a \$1,500 distribution from his educational savings account and used \$1,200 to pay for qualified education expenses. Before the distribution, Phillip's account balance was \$4,000, of which \$1,000 was earnings. Calculate the following:a. The tax-free return of capitalb. His new adjusted basis for his savings accountc. Distribution of earnings potentially subject to taxd. The excludable portion of the earningse. The taxable portion of her earnings

Paper#52419 | Written in 18-Jul-2015

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