Hannibal Lecter is single and cannot be claimed as a dependent on another person’s tax return. He is 45 years old and is not blind. He is not in AMT. He has no dependents. He is fully “at risk” for all of his investments and activities. He has receipts for all of his payments. He does not qualify for a Qualified Business Income deduction. 

Hannibal Lecter reports the following activity for 2020: 

Salary Income $141,000 

Interest Income from bank accounts 3,100 

Interest Income from State and Local Bonds 10,000 

Dividends (qualified) 2,000 

Long Term Capital Gains 8,000 

FMV of Gift Received from his sister 16,000 

Gains taxed under Section 1245 700 

Net Loss from Sch. C (Hannibal is a material participant) 1,200 

Net income from a passive rental property (Hannibal is NOT a material participant and is NOT an active participant) (3,200) 

Net ordinary loss from K-1 (Hannibal is NOT a material participant in the partnership) Cash distributions from a partnership reported on Sch. K-1 5,000 

State Income Tax Withheld from W-2 3,000  

State Income Estimated Payments made in 2020 500

Federal income tax withheld from his W-2 12,000 

Real Estate Taxes on personal residence 5,000 

Mortgage Interest paid on personal residence (all qualified acquisition debt) 10,000 

Charitable donations made to qualified charities in cash 2,000 

Nonrefundable Tax Credits 674 charities in cash 

Nonrefundable Tax Credits 674 

A. What is Hannibal's AGI for 2020? 

B. What is the total of Hannibal's itemized deductions for 2020? 

C. What is Hannibal's taxable income for 2020? 

D. What is Hannibal's federal income tax liability for 2020? 

E. What is Hannibal's refund or tax due with his 2020 tax return?  

Answer rating: 100% (QA)

May58 621 Solution Answer is highlighted in yellow Salary income Interst income from bank ... View the full answer