Dolly is a cash basis taxpayer. In 2013, she filed her 2012 Virginia income tax return and received a $2,200

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Dolly is a cash basis taxpayer. In 2013, she filed her 2012 Virginia income tax return and received a $2,200 refund. Dolly took the standard deduction on her 2012 Federal income tax return, but will itemize her deductions in 2013. Molly, a cash basis taxpayer, also filed her 2012 Virginia income tax return in 2013 and received a $600 refund. Molly had $12,000 in itemized deductions on her 2012 Federal income tax return, but will take the standard deduction in 2013. How does the tax benefit rule apply to Dolly's and Molly's situations? Explain.

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Related Book For  answer-question

South Western Federal Taxation 2014 Comprehensive Volume

ISBN: 9781285180922

37th Edition

Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young

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Question Posted: January 04, 2017 06:22:18