Dolly is a cash basis taxpayer. In 2015, she filed her 2014 South Carolina income tax return

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Dolly is a cash basis taxpayer. In 2015, she filed her 2014 South Carolina income tax return and received a $2,200 refund. Dolly took the standard deduction on her 2014 Federal income tax return, but will itemize her deductions in 2015. Molly, a cash basis taxpayer, also filed her 2014 South Carolina income tax return in 2015 and received a $600 refund. Molly had $12,000 in itemized deductions on her 2014 Federal income tax return, but will take the standard deduction in 2015. How does the tax benefit rule apply to Dolly's and Molly's situations? Explain.
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South Western Federal Taxation 2016 Comprehensive

ISBN: 9781305395114

39th Edition

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

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