Question: Trevor is a single individual who is a cash-method, calendar-year taxpayer. For each of the next two years (year 1 and year 2), Trevor
Trevor is a single individual who is a cash-method, calendar-year taxpayer. For each of the next two years (year 1 and year 2), Trevor expects to report AGI of $110,000, contribute $8,300 to charity, and pay $3,550 in state income taxes. Required: a. Estimate Trevor's taxable Income for year 1 and year 2 using the 2019 amounts for the standard deduction for both years. b. Now assume that Trevor combines his anticipated charitable contributions for the next two years and makes the combined contribution in December of year 1. Estimate Trevor's taxable income for each of the next two years using the 2019 amounts for the standard deduction. c. Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $3,500 and $32,500, respectively, each year. Estimate Trevor's taxable income for each of the next two years (year 1 and year 2) using the 2019 amounts for the standard deduction and also assuming Trevor makes the charitable contribution of $8,300 and state tax payments of $3,550 in each year. d. Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $3,500 and $32,500, respectively, each year. Assume that Trevor makes the charitable contribution for year 2 and pays the real estate taxes for year 2 in December of year 1. Estimate Trevor's taxable income for year 1 and year 2 using the 2019 amounts for the standard deduction. Complete this question by entering your answers in the tabs below. Req A Reg B Req C Reg D Estimate Trevor's taxable income for year 1 and year 2 using the 2019 amounts for the standard deduction for both years. Year 1 Year 2 AGI 24 110,000 s 110,000 Itemized deductions Standard deduction (12.200) (12,200) 97,800 $ (12.200) (12,200) 97,800 195,600 Greater of standard deduction over itemized deductions Taxable income %24 Total taxable income for the two years
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