Calculate the tax liability for Cadence and Clark Carter for this year based on the following information.

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Cadence and Clark Carter file married joint.

Information for 2020:

Salary $200,000
State of New York Interest $10,000
Treasury bill interest $20,000
A gift from Cadence’s mother $40,000
Sole Proprietorship income $50,000 (Landscaping business)
Clark inherited $100,000 from his great grandfather
Long term Capital Gain $60,000
Unemployment income $20,000
Workmen’s compensation $30,000
Legal Settlement for a broken ankle $100,000
Cadence found a bracelet worth $20,000 on the beach.
Clark’s sister Cai, repaid a $20,000 loan from 2011.
Cadence won $10,000 at bingo.
Contribution to Health savings account $ 1,000
Self-employment tax $4,000
Alimony paid $10,000. The divorce was finalized in 2006.
Medical Expenses $40,000
Real estate taxes $20,000
State income tax $25,00
Mortgage interest $60,000, the $3,000,000 mortgage was signed in 2010.

Donation to American Kidney Society $40,000

Answer rating: 100% (QA)

As per given details please refer below details Before go ahead please note below points The federal government doesnt impose an inheritance Gift tax and inheritances gift received arent subject to in... View the full answer