Demarco and Janine Jackson have been married for 20 years and have four children who qualify...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents (Damarcus, Jasmine, Michael, and Candice). The Jacksons file a joint tax return. The couple received salary income of $103,000 and qualified business income of $12,000 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $210,000 and they sold it for $260,000. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $16,900 of itemized deductions, and they had $4,000 withheld from their paychecks for federal taxes. They are also allowed to claim a child tax credit for each of their children. However, because Candice was 18 years of age at year end, the Jacksons may claim a child tax credit for other qualifying dependents for Candice. (Use the tax rate schedules.) Required: c. What would their taxable income be if their itemized deductions totaled $28,400 instead of $16,900? d. What would their taxable income be if they had $0 itemized deductions and $6,800 of for AGI deductions? e. Assume the original facts but now suppose the Jacksons also incurred a loss of $5,200 on the sale of some of their investment assets. What effect does the $5,200 loss have on their taxable income? f. Assume the original facts but now suppose the Jacksons own investments that appreciated by $10,000 during the year. The Jacksons believe the investments will continue to appreciate, so they did not sell the investments during this year. What is the Jacksons' taxable income? Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents (Damarcus, Jasmine, Michael, and Candice). The Jacksons file a joint tax return. The couple received salary income of $103,000 and qualified business income of $12,000 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $210,000 and they sold it for $260,000. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $16,900 of itemized deductions, and they had $4,000 withheld from their paychecks for federal taxes. They are also allowed to claim a child tax credit for each of their children. However, because Candice was 18 years of age at year end, the Jacksons may claim a child tax credit for other qualifying dependents for Candice. (Use the tax rate schedules.) Required: c. What would their taxable income be if their itemized deductions totaled $28,400 instead of $16,900? d. What would their taxable income be if they had $0 itemized deductions and $6,800 of for AGI deductions? e. Assume the original facts but now suppose the Jacksons also incurred a loss of $5,200 on the sale of some of their investment assets. What effect does the $5,200 loss have on their taxable income? f. Assume the original facts but now suppose the Jacksons own investments that appreciated by $10,000 during the year. The Jacksons believe the investments will continue to appreciate, so they did not sell the investments during this year. What is the Jacksons' taxable income?
Expert Answer:
Answer rating: 100% (QA)
Taxable Income Calculations for the Jacksons a Given Information Salary income 103000 Qualified busi... View the full answer
Related Book For
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Posted Date:
Students also viewed these accounting questions
-
Future of Health Care Management What would your first five actions be if you were appointed to serve as a project manager? Explain why.
-
Prior to the deregulation of the banking industry in the 1980s, which institutions were dominant in providing funds for the purchase of single-family residences? (a) Commercial banks (b) Saving and...
-
Explain how teacher knowledge of context impacts the development of meaningful learning and teaching for any particular group of young children. Cite at least three relevant sources from the...
-
How long will $500,000, in an investment account that earns 5.25% compounded monthly, sustain month-end withdrawals of $3000?
-
A company is planning a large telephone survey and is interested in assessing how long it will take. In a short pilot study, 40 people are contacted by telephone and are asked the specified set of...
-
1 . Use these data to answer Questions 1. a. Compute the Pearson product-moment correlation coefficient by hand and show all your work. b. Construct a scatterplot for these 10 values by hand. Based...
-
Multiple-Choice Questions 1. Microsoft found that instead of producing a DVD player and a gaming system separately, it is cheaper to incorporate DVD playing capabilities in their new version of the...
-
Ju(x,t) 1 au(x,t) = for-x < x < as two travelling waves when initial velocity is at Find the solution u(x, t) for the 1D wave equation 2 zero (make sure the first function represents wave travelling...
-
You work as a finance manager for NSB, a large manufacturing company. You are part of a team tasked with reviewing the bonus scheme NSB operates for its managers. You have been asked to make a...
-
The principal question, in this case, concerns the admissibility of evidence seized from an automobile, in which petitioner was riding at the time of his arrest after the automobile was taken to a...
-
What is incorporation? What is legal personality? Which legal forms are legal persons? What are the (global) characteristics of a limited liability company? Which legal forms are/can be based on...
-
What would be a good operating plan for real estate?
-
What are the different business entities' strengths and weaknesses? How does forming a formal business entity impact a business.
-
What are generalized arguments that both support and oppose diversion programs.
-
What would be the pros and cons of opening the XYZ coffee shop locally?
-
Ex. (17): the vector field F = x i-zj + yz k is defined over the volume of the cuboid given by 0x a,0 y b, 0zc, enclosing the surface S. Evaluate the surface integral ff, F. ds?
-
A system with a natural frequency of \(10 \mathrm{rad} / \mathrm{s}\) has a shorter period than a system of natural frequency \(100 \mathrm{rad} / \mathrm{s}\). Indicate whether the statement...
-
The natural frequency determined directly from the differential equation of motion has units of Hertz. Indicate whether the statement presented is true or false. If true, state why. If false, rewrite...
-
A system with a damping ratio of 1.2 is overdamped. Indicate whether the statement presented is true or false. If true, state why. If false, rewrite the statement to make it true.
Study smarter with the SolutionInn App