a) Chuck, who is 33 and single, has an AGI of $377,000 during 2017. He incurred...

a) Chuck, who is 33 and single, has an AGI of $377,000 during 2017. He incurred the following expenses and losses during the year. Compute his allowed itemized deductions for 2017.

Medical expenses before 7.5% of AGI limit	$42,000
State and Local Income Taxes	$8,500
State Sales Tax	$2,700
Real Estate Property Tax	$7,500
Home Mortgage interest	$16,000
Charitable contribution to church	$6,750
Casualty loss before 10% limitation (after $100) floor	$50,000
Unreimbursed employee expenses subject to 2% of AGI limitation	$9,400
Gambling losses (Chuck has $3,500 of gambling income)	$4,800

b) Clara, age 72 and single, is claimed as a dependent on her son’s tax return. During 2017, she had dividend income of $2,500 and $1,900 of earned income from housecleaning. What is her taxable income?

c) Cecil incurred $60,000 of interest expense related to his investments in 2017. His investment income included $30,800 of interest and a $24,200 net long term capital gain on the sale of securities. Cecil has asked you to compute the amount of his deduction for investment interest, taking into consideration any options he might have. What is the maximum amount of Cecil’s investment interest deduction in 2017?

Solutions

Expert Solution

answer calculation of itemwize deduction
Medical expenses before 42000-(10%*377000)	4300
Deductible Itemwize deduction subject to overall limitation	44685
Casualty loss before 50000-(10%*377000)	$12,300
Gambling losses (Chuck has $3,500 of gambling income)	$4,800
Total itemwize deduction	$66,085


working
Medical expenses before 42000-(10%*377000)	4300
State and Local Income Taxes	$8,500
State Sales Tax	$2,700
Real Estate Property Tax	$7,500
Home Mortgage interest	$16,000
Charitable contribution to church	$6,750
Casualty loss before 10% limitation (after $100) floor	$50,000
Unreimbursed employee expenses subject to 2% of AGI limitation	$9,400
Gambling losses (Chuck has $3,500 of gambling income)	$4,800

He is a single sand $377000 is his AGI so $261500 limiltation applied on certain items for itemwized deduction
State and Local Income Taxes	$8,500
Real Estate Property Tax	$7,500
Home Mortgage interest	$16,000
Charitable contribution to church	$6,750
Unreimbursed employee expenses subject to 2% of AGI limitation	$9,400
Total	$48,150
Whichever is less
(3%*(377000-261500)	3465
Or 80%*48150	$38,520
Amt of reduction	3465
Deductible Itemwize deduction subject to overall limitation	44685
(48150-3465)

Dera student there are three different question. I have answered the first one

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Pedro, who is a single taxpayer, had AGI of $347,200 for 2016. He incurred the following...

Pedro, who is a single taxpayer, had AGI of $347,200 for 2016. He incurred the following expenses during the year: Medical expenses before 10%-of-AGI limitation $20,540 State and local income taxes $10,416 Real estate taxes $2,083 Home mortgage interest $17,360 Charitable contributions $4,166 Deductible investment interest expense $1,562 Compute the amount of Pedro's itemized deductions after any applicable reductions. Round your computations to the nearest dollar and use rounded amounts in subsequent calculations.

Pedro, who is a single taxpayer, had AGI of $328,000 for 2018. He incurred the following...

Pedro, who is a single taxpayer, had AGI of $328,000 for 2018. He incurred the following expenses during the year: Medical expenses before 10%-of-AGI limitation $12,000 State and local income taxes 8,900 Real estate taxes 1,600 Home mortgage interest 16,000 Charitable contributions 2,200 Deductible investment interest expense 1,700 Compute the amount of Pedro’s itemized deductions after any applicable reductions.

Antoine is single and has AGI of $277,000 for 2018. He incurred the following expenses and...

Antoine is single and has AGI of $277,000 for 2018. He incurred the following expenses and losses during the year: Medical expenses before the 7.5%-of-AGI limitation $37,300 State and local income taxes 2,700 State sales tax 2,900 Real estate taxes 13,400 Home mortgage interest 12,800 Credit card interest 815 Charitable contribution 11,700 Casualty loss before 10% limitation (after $100 floor; not in a Federally declared disaster area) Unreimbursed employee expenses subject to the 2%-of-AGI limitation 20,600 14,400 If required, round...

In 2018, Ava, an employee, who files single, has AGI of $29,900 and incurred the following...

In 2018, Ava, an employee, who files single, has AGI of $29,900 and incurred the following miscellaneous itemized deductions this year: Union dues and work uniforms: $990 Home office expenses: $2,970 Unreimbursed employee expenses: $1,386 Gambling losses to the extent of gambling winnings: $1,150. What is Ava’s total itemized deduction related to these items?

Reggie, who is 55, had AGI of $23,200 in 2018. During the year, he paid the...

Reggie, who is 55, had AGI of $23,200 in 2018. During the year, he paid the following medical expenses. Drug (prescribed by physicians) $245 Marijuana (prescribed by physician) $1.445 Health Insurance premiums-after taxes $1,090 Doctors fee $1,295 Eyeglasses $420 Over-the counter drugs $245 Reggie received $545 in 2018 for a portion of the doctors’ fees from his insurance. What is Reggie’s medical expense deduction? Medical deduction expense : _________________________

Reggie, who is 55, had AGI of $36,000 in 2019. During the year, he paid the...

Reggie, who is 55, had AGI of $36,000 in 2019. During the year, he paid the following medical expenses: Drugs (prescribed by physicians) $ 580 Marijuana (prescribed by physicians) 1,480 Health insurance premiums–after taxes 1,250 Doctors’ fees 1,330 Eyeglasses 455 Over-the-counter drugs 280 Required: Reggie received $580 in 2019 for a portion of the doctors’ fees from his insurance. What is Reggie’s medical expense deduction?

During 2017, Grant receives a $45,000 salary and has no deductions for AGI. In 2016, Grant...

During 2017, Grant receives a $45,000 salary and has no deductions for AGI. In 2016, Grant had a $5,500 STCL available and no other capital losses or capital gains. Consider the following sales. An automobile purchased in 2012 for $11,200 and held for personal use is sold for $8,000. On April 10, 2017, stock held for investment is sold for $32,000. The stock was acquired on November 20, 2016, for $16,000. Salary? Net short-term capital gain (loss)? Net long-term capital...

A). Rasheed works for Company A, earning $357,000 in salary during 2017. Assuming he is single...

A). Rasheed works for Company A, earning $357,000 in salary during 2017. Assuming he is single and has no other sources of income, what amount of FICA tax will Rasheed pay for the year? (Round your intermediate calculations to the nearest whole dollar amount.) B). This year Amber opened a factory to process and package landscape mulch. At the end of the year, Amber’s accountant prepared the following schedule for allocating manufacturing costs to the mulch inventory, but her accountant...

Chris, who files single, has an Adjusted Gross Income (AGI) of $100,000. Compute the following, assuming...

Chris, who files single, has an Adjusted Gross Income (AGI) of $100,000. Compute the following, assuming her itemized deductions total $5,000. Round your gross tax liability to the nearest dollar. If filing for the 2017 tax year: AGI $100,000 Less: larger of itemized or standard deduction - Less: Personal exemption - Taxable Income Gross Tax Liabiliy If filing for the 2018 tax year: AGI $100,000 Less: larger of itemized or standard deduction - Less: Personal exemption - Taxable Income Gross...

Jack, who is single, and whose AGI is $55,000 in 2002, paid interest of $3,500 on...

Jack, who is single, and whose AGI is $55,000 in 2002, paid interest of $3,500 on a student loan, $1,500 on credit cards used to pay for a vacation and $3,000 on a car loan. The total interest deductible by Jack is $3,000. True/False and Explain.

Subjects