Question

In: Finance

JAMES Taxpayer has AGI of $100,000 in 2018 for the following He has doctor costs of...

JAMES Taxpayer has AGI of $100,000 in 2018 for the following
1. He has doctor costs of $10,000, hearing aid of $1,000, bayer aspirin of $500, braces of $3,000, and eyeglasses of $1000. What is is deductible medical?

He has state withholding of $10,000, property taxes of $5,000, DMV of $500. What is his deductible state taxes?

He purchased a home in 2018, and paid mortgage interest of $30,000. The loan on the home is $1,000,000. He also has credit card debt interest of $1000. What is his deductible interest?

He has employee business expenses of $3,000, and tax preparation fees of $500. His deductible miscellaneous expenses would be?

Expert Solution

A. Deductible medical expenses are which exceed 7.5% of adjusted gross income. (For 2018 specially).

Total eligible expenditure :

Doctor costs. =$10000

Hearing aid. =$1000

Bayer aspirin. =$500

Braces. =$3000

Eye glasses. =$1000

Total =$15500.

Deductible expenditure will be the amount which exceeds 7.5% of adjusted grss income

7.5% of gross income =7500.

Eligible amount of deduction =$15500-$7500=$8000.

B.For 2018 maximum limit of deduction is $10000.only .

Currently it is unlimited.

Eligible deduction =$10000.

C.Eligible interest expenditure are only mortgage interest and not credit card interest.

Amount of deduction =$30000.

D.we can deduct only unreimbursed employee expenses from income.

By assuming it is unreimbursed ,it is eligible for deduction.

Tax preparation fees include payment made to professional like accountants,lawyers,etc

They are eligible for deduction.

Total deduction =$3000+$500=$3500.

jeff jeffy answered 9 months ago

8) Joe Taxpayer has AGI of $100,000 in 2018 for the following a. He has doctor...

8) Joe Taxpayer has AGI of $100,000 in 2018 for the following a. He has doctor costs of $10,000, hearing aid of $1,000, bayer aspirin of $500, braces of $3,000, and eyeglasses of $1000. What is is deductible medical? b. He has state withholding of $10,000, property taxes of $5,000, DMV of $500. What is his deductible state taxes? c. He purchased a home in 2018, and paid mortgage interest of $30,000. The loan on the home is $1,000,000. He...

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...

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.

An unmarried taxpayer with AGI of $120,000 in 2017 has a tax liability of $21,000. The...

An unmarried taxpayer with AGI of $120,000 in 2017 has a tax liability of $21,000. The taxpayer's 2018 AGI and tax liability are $175,000 and $31,000, respectively. To avoid any penalty for underpayment of estimated tax in 2018, the minimum amount the taxpayer must prepay during 2018 is: A. $21,000 B. $23,100 (marked incorrect on test results already) C. $27,900 D. $31,000 E. $34,100

During 2018, James, a single, cash method taxpayer incurred the following expenditures: Qualified medical expenses &n

During 2018, James, a single, cash method taxpayer incurred the following expenditures: Qualified medical expenses $8,000 Investment interest expense 16,000 Other investment activity expenses 15,000 Qualified residence interest 12,000 Interest on loan on personal auto 2,000 Charitable contributions 3,000 State income tax paid 7,000 State sales tax paid 4,500 Property taxes 4,000 Tax return preparation and consulting fees 5,000 James’ income consisted of the following items: Salary 70,000 Interest income ...

Nathan is married two children and has AGI of $405000. He also has the following adjustments...

Nathan is married two children and has AGI of $405000. He also has the following adjustments and preferences: a itemized deductions: Medical after floor $5375 , Taxes $34354, mortgage interest $14900, contributions $18000 and misc deductions after floor $540. Depreciation of af rental property purchased in 8/2007 for $210000. Assets Computer 1 02/12/13 $2900 computer 2 2/12/13 $12000 and incentive stock option Nathan exercises options to purchase 1000 share at $19 per share when the market value is $26. The...

Sapo is both a doctor and a partner in Health Well medical practice. He receives $100,000...

Sapo is both a doctor and a partner in Health Well medical practice. He receives $100,000 income from the medical practice in the current financial year. For the past four years, Sapo has also made leather sandals for sale at his local market He has not yet made a profit from selling the sandals. In the current financial year Sapo has sold $15,000 worth of sandals but incurred expenses totalling $17,500. Sapo wishes to offset the $2,500 loss against his...

Bill is single and has the following information for 2018. What is his AGI after considering...

Bill is single and has the following information for 2018. What is his AGI after considering all of this information? Bill is an executive and has $400,000 of salary income. Bill owns 100% of Holtz, Inc. Holtz is a C corporation with $2,000,000 of taxable income for 2018. Bill receives a $75,000 cash dividend. Bill owns 100% of Wallace Enterprises. Wallace is an S corporation. Bill does not materially participate in the S corporation. His basis in the stock is...

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?