In: Accounting
14. Emily, who lives in Indiana, volunteered to travel to
Louisiana in March to work on...
14. Emily, who lives in Indiana, volunteered to travel to
Louisiana in March to work on a home-building project for
Habitat for Humanity (a qualified charitable organization). She was
in Louisiana for three weeks. She normally
makes $500 per week as a carpenter’s assistant and plans to deduct
$1,500 as a charitable contribution. In addition,
she incurred the following costs in connection with the trip: $600
for transportation, $1,200 for lodging, and $400 for
meals. What is Emily’s deduction associated with this charitable
activity?
In 2018, Joanne invested $90,000 for a 20% interest in a limited
liability company (LLC) in which she is a material
participant. The LLC reported losses of $340,000 in 2018 and
$180,000 in 2019. Joanne’s share of the LLC’s losses
was $68,000 in 2018 and $36,000 in 2019. How much of these losses
can Joanne deduct?
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a. $68,000 in 2018; $36,000 in 2019. |
|
b. $68,000 in 2018; $22,000 in 2019. |
|
c. $0 in 2018; $0 in 2019. |
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d. $68,000 in 2018; $0 in 2019. |
Rex and Dena are married and have two children, Michelle (age 7)
and Nancy (age 5). During 2018, Rex earned a
salary of $24,500, received interest income of $300, and filed a
joint income tax return with Dena. Dena had $0 gross
income. Their earned income credit for the year is:
ekkarill92 answered 6 months ago