Marvin Moving has begun to prepare his 2020 tax return and has already computed the following...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Marvin Moving has begun to prepare his 2020 tax return and has already computed the following amounts correctly: Income from Employment Income from Business Income from Property (rental & interest) Marvin moved from Cornwall to Ottawa during the year to take a new job with a software developer. Marvin cancelled his lease on this condo in Cornwall and was charged a $1,200 penalty. Marvin purchased a new condo in Ottawa. Marvin's employer did not offer to pay for any moving expenses and, being a new employee, Marvin was too shy to ask. The full amount of the employment income listed above relates to the new job, and his moving expenses were recorded as: AAA Moving Company Gas (driving from Cornwall to Ottawa 103 km) Meals (lunch on the way from Cornwall to Ottawa) $45,000 24,250 3,500 Hotel in Ottawa - 3 nights so Marvin could paint his new condo. Land Transfer Tax for his new condominium in Ottawa Cost $ 400 $2,900 WWII Coin Collection $1,400 1968 Dodge Charger (car) $8,000 Not wanting to move items he no longer was using, Marvin sold a number of his personal items. He provides you with the following information about those: Asset Artwork Computer Net capital loss Non-capital loss LPP loss $1,800 60 15 600 4,580 Proceeds Received $ 2,300 $1,000 $ 800 $13,560 Besides the moving expenses, Marvin tells you that he has the following carry-forward balances from recent taxation years: $12,000 $15,000 $ 2,000 Required: Assuming Marvin wants to minimize his taxes payable, calculate his net income for tax purposes and his taxable income for 2020. Also, tell Marvin if he has any loss carry- forwards after this year and what types of income they can be applied to. Marvin Moving has begun to prepare his 2020 tax return and has already computed the following amounts correctly: Income from Employment Income from Business Income from Property (rental & interest) Marvin moved from Cornwall to Ottawa during the year to take a new job with a software developer. Marvin cancelled his lease on this condo in Cornwall and was charged a $1,200 penalty. Marvin purchased a new condo in Ottawa. Marvin's employer did not offer to pay for any moving expenses and, being a new employee, Marvin was too shy to ask. The full amount of the employment income listed above relates to the new job, and his moving expenses were recorded as: AAA Moving Company Gas (driving from Cornwall to Ottawa 103 km) Meals (lunch on the way from Cornwall to Ottawa) $45,000 24,250 3,500 Hotel in Ottawa - 3 nights so Marvin could paint his new condo. Land Transfer Tax for his new condominium in Ottawa Cost $ 400 $2,900 WWII Coin Collection $1,400 1968 Dodge Charger (car) $8,000 Not wanting to move items he no longer was using, Marvin sold a number of his personal items. He provides you with the following information about those: Asset Artwork Computer Net capital loss Non-capital loss LPP loss $1,800 60 15 600 4,580 Proceeds Received $ 2,300 $1,000 $ 800 $13,560 Besides the moving expenses, Marvin tells you that he has the following carry-forward balances from recent taxation years: $12,000 $15,000 $ 2,000 Required: Assuming Marvin wants to minimize his taxes payable, calculate his net income for tax purposes and his taxable income for 2020. Also, tell Marvin if he has any loss carry- forwards after this year and what types of income they can be applied to.
Expert Answer:
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these general management questions
-
In June of 2014, Keith accepts a new job with the same employer in San Diego. He formerly commuted 12 miles to a job in Canton, OH; San Diego is 2,150 miles from his old home. He incurs the following...
-
Jessie just started a new job with a significant increase in salary above what she was earning when she originally negotiated her student loan repayment. The salary increase affords her the...
-
You start a new job with an international manufacturing company. One of the perks of the new role is that the company offers a dollar-for-dollar 401(k) match, up to a maximum of 3,000 per year. You...
-
Selected financial data for Petersen Corporations revenue and income (contribution) are reproduced below: Required: a. Use common-size statements to analyze every divisions (1) contribution to total...
-
Under what circumstances is a short-term loan classified among the long-term liabilities on the balance sheet?
-
Exercise 7.65 reported that the biomass for tropical woodlands, thought to be about 35 kilograms per square meter (kg/m2), may in fact be too high and that tropical biomass values vary...
-
7. CPA QUESTION A voluntary petition filed under the liquidation provisions of Chapter 7 of the federal Bankruptcy Code: a. Is not available to a corporation unless it has previously filed a petition...
-
Items 1 through 9 are selected questions of the type generally found in internal control questionnaires used by auditors to obtain an understanding of internal control in the sales and collection...
-
Maria Gutierrez and Devin Cuncan recently graduated from thesame university. After graduation they decided not to seek jobs atestablished organizations but, rather, to start their own smallbusiness...
-
Cost 100,000 Similar projects, Eta and Zeta, are being considered using the payback method. Each has an initial cost of $100,000. Annual cash flows for each project are provided in the table at the...
-
1.0 dm3 of which of the following contains the greatest number of atoms A. He(g) B. CO2(g) C. H2(g) D. CH4(g)
-
K & A Appliance provides repair services for all makes andmodels of home appliances. K & A Appliance charges customersfor labor on each job at a rate of $86 per hour. The labor rate ishigh enough to...
-
Martin Jackson receives an hourly wage rate of $17, withtime-and-a-half pay for all hours worked in excess of 40 hoursduring a week. Payroll data for the current week are as follows:hours worked, 48;...
-
Factor 9x+12x+4 x3 +
-
In a decentralized company, which types of decisions will be made at the highest levels of he organization? Please provide an example. You are the area manager of several Louisiana - based Starbucks...
-
Tim and Cook agree to combine their sole trading businesses and form a partnership. The fair value and the carrying amount of assets and liabilities are as follows. Tim's Book Cook's Book Accounts...
-
Richardson Orthodontist Practice specializes in correcting misaligned teeth. During 2023, Richardson provided services on account1 of $590,000. Of this amount, $80,000 remains receivable at the end...
-
Consider the advantages and disadvantages of extending property rights so that everyone would have the right to prevent people imposing any costs on them whatsoever (or charging them to do so).
-
Please answer the following questions regarding the taxability of Social Security: a. A 68-year-old taxpayer has $20,000 in Social Security income and $100,000 in tax-free municipal bond income. Does...
-
Tom has a successful business with $100,000 of income in 2012. He purchases one new asset in 2012, a new machine which is 7-year MACRS property and costs $25,000. If you are Tom's tax advisor, how...
-
Frank, age 35, and Joyce, age 34, are married and file a joint income tax return for 2012. Their salaries for the year total $83,000 and they have taxable interest income of $4,000. They have no...
-
Explain why and how bond discount and bond premium affect (a) the balance sheet and (b) the income statement of the investor.
-
What are convertible bonds? What are the primary reasons for their use?
-
Under GAAP, when is it appropriate to use the (a) straight-line interest method and (b) effective interest method of amortization for bond discount or premium?
Study smarter with the SolutionInn App