Question

In: Accounting

51-54. Eve, age 65 and single with no dependents, provided the following information for her 2018...

51-54. Eve, age 65 and single with no dependents, provided the following information for her 2018 income tax return: Gross income $55,000 Capital loss $ 4,000 Total itemized deductions $ 4,400

Eve's capital loss deduction to reach AGI is: a. $0. b. $3,000. c. $4,000. d. None of the above.

Eve's standard deduction, if it is used, is: a. $1,600. b. $13,600. c. $1,000. d. $12,000. e. None of the above.

Eve's personal exemption is: a. $4,150. b. $0. c. $5,750. d. $4,050. e. None of the above.

Eve's taxable income is: a. $38,400. b. $40,000. c. $40,050. d. $40,150. e. None of the above.

Solutions

Expert Solution

Answers are as under :
1 Eve's capital loss deduction to reach AGI is: a. $0. b. $3,000. c. $4,000. d. None of the above.
Option b. $3,000
Reason : All Long capital gain are required to be set off against long term loss first and all short term term gain can be setoff against short term loss first. After if any long or short term loss remains, it can be setoff against each other.
During the year if there is no short term or long term gain , but only capital loss is there , then the same can be set off against other income from business, salary interest etc. subject to maximum $ 3,000/-.
2 Eve's standard deduction, if it is used, is: a. $1,600. b. $13,600. c. $1,000. d. $12,000. e. None of the above.
Option d. $12,000
Reason : Tax payer can claim standard deduction or itemized deduction whichever is more beneficial to them. In case of single tax payer , maximum standard deduction is $ 12,000 which is more than the Eve's Itemized deduction. There fore it is advisable to claim $ 12,000/-
3 Eve's personal exemption is: a. $4,150. b. $0. c. $5,750. d. $4,050. e. None of the above.
Option b. $0
Reason : Personal tax exemption for the year 2018 is removed / eliminated
4 Eve's taxable income is: a. $38,400. b. $40,000. c. $40,050. d. $40,150. e. None of the above.
Option b. $ 40,000
Particular $
Gross income 55,000.00
Less : Capital Loss     3,000.00
Less : Standard deduction 12,000.00
Taxable Income 40,000.00

Related Solutions

Jimbo (age 52) is single with no dependents. Jimbos adjusted gross income for 2018 is $201,000,...
Jimbo (age 52) is single with no dependents. Jimbos adjusted gross income for 2018 is $201,000, which consists of his salary of $150,000 and long-term capital gain income of $51,000. What is the amount of net investment income- not tax income, if any, that jimbo will pay for 2018?
48 51 52 52 53 54 54 54 55 56 58 58 59 61 63 65...
48 51 52 52 53 54 54 54 55 56 58 58 59 61 63 65 65 67 69 70 73 75 75 76 77 77 79 80 81 82 82          Find the 76th percentile Find the 43rd percentile Find the 20th percentile Find the 76th percentile
Eric, who is single with no dependents, has the following for the calendar year 2018: RECEIPTS...
Eric, who is single with no dependents, has the following for the calendar year 2018: RECEIPTS FOR YEAR Salary as Walmart greeter                                                              $ 16,200 Interest from Friendly Bank                                                                 2,236 Interest from City of Chula Vista                                                        2,000 Dividends from U.S. corporations                                                            69 Social Security benefits                                                                        18,000 EXPENDITURES FOR YEAR Contribution to IRA                                                                                      920 Unreimbursed medical expense                                                            1,200 Home mortgage interest                                                                          3,400 State income and property taxes                                                          3,200 Charitable contributions of cash                                                           5,400 Tax preparation fee                                                                                       175 Eric claims two exemptions....
Population 1   Population 2 51   54 57   51 65   67 68   60 53   58 58   61...
Population 1   Population 2 51   54 57   51 65   67 68   60 53   58 58   61 75   66 72   79 Can it be concluded, from this data, that there is a significant difference between the two population means? Let d=(Population 1 entry)−(Population 2 entry). Use a significance level of α=0.1 for the test. Assume that both populations are normally distributed. Step 1 of 5: State the null and alternative hypotheses for the test. Step 2 of 5: Find the value...
Andi, age-79, is single and has no dependents. Andi had the following relevant transactions for 2019:...
Andi, age-79, is single and has no dependents. Andi had the following relevant transactions for 2019: Social Security benefits for Andi                                                                       $19,000 Interest income from local bank                                                                              650 Qualified dividends                                                                                                   555 Loss on sale of Tandem Diabetic stock (held from 11/10/2017 to 10/31/2019)                                                                             -3,100 Federal income tax quarterly deposits (total)                                                     2,800 Itemized deductions                                                                                            7,925 Total Capital gain 30,378                                                                                                          Single                                                                                                         Family RENTAL OPERATIONS                                                                   Home                 Duplex            Rental income                                                                        $21,900               $29,200 Interest expense                                                                        8,800                 11,200 Property taxes                                                                           1,650                   6,366 Maintenance                                                                                  440                     ...
Janice Morgan, age 24, is single and has no dependents. She is a freelance writer. In...
Janice Morgan, age 24, is single and has no dependents. She is a freelance writer. In January 2015, Janice opened her own office located at 2751 Waldham road, Pleasat Hill, NM 88135. She called her business Writers Anonymous. Janice is a cash basis taxpayer. She lives at 132 Stone Avenue, Pleasant Hill, NM 88135. Her Social Security number is 123-45-6789. Janice's parents continue to provide health insurance for her under their policy. Janice wants to contribute to the Presidential Election...
Janice Morgan, age 24, is single and has no dependents. She is a freelance writer. In...
Janice Morgan, age 24, is single and has no dependents. She is a freelance writer. In January 2019, Janice opened her own office located at 2751 Waldham road, Pleasat Hill, NM 88135. She called her business Writers Anonymous. Janice is a cash basis taxpayer. She lives at 132 Stone Avenue, Pleasant Hill, NM 88135. Her Social Security number is 123-45-6789. Janice's parents continue to provide health insurance for her under their policy. Janice wants to contribute to the Presidential Election...
Janice Morgan, age 24, is single and has no dependents. She is a freelance writer. In...
Janice Morgan, age 24, is single and has no dependents. She is a freelance writer. In January 2018, Janice opened her own office located at 2751 Waldham Road, Pleasant Hill, NM 88135. She called her business Writers Anonymous. Janice is a cash basis taxpayer. She lives at 132 Stone Avenue, Pleasant Hill, NM 88135. Her Social Security number is 123-45-6789. Janice’s parents continue to provide health insurance for her under their policy. Janice wants to contribute to the Presidential Election...
Jane Smith, age 40, is single and has no dependents. She is employed as a legal...
Jane Smith, age 40, is single and has no dependents. She is employed as a legal secretary by Legal Services, Inc. She owns and operates Typing Services located near the campus of Florida Atlantic University at 1986 Campus Drive. Jane is a material participant in the business. She is a cash basis taxpayer. Jane lives at 2020 Oakcrest Road, Boca Raton, FL 33431. Jane’s Social Security number is 123-45-6789. Jane indicates that she wants to designate $3 to the Presidential...
Jane Smith, age 40, is single and has no dependents. She is employed as a legal...
Jane Smith, age 40, is single and has no dependents. She is employed as a legal secretary by Legal Services, Inc. She owns and operates Typing Services located near the campus of Florida Atlantic University at 1986 Campus Drive. Jane is a material participant in the business. She is a cash basis taxpayer. Jane lives at 2021 Oakcrest Road, Boca Raton, FL 33431. Jane's Social Security number is 123-45-6789. Jane indicates that she wants to designate $3 to the Presidential...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT