Joanne Smith was born in 1948. John Smith, Joanne's husband, was born in 1940. They are...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Joanne Smith was born in 1948. John Smith, Joanne's husband, was born in 1940. They are both not blind. They gave these following people more than 50% of their support throughout the year. Their 24-year-old son, Shuan Smith, spent the entire year with them while he was a full-time college student. Jenings also made$ 4,999 per year while employed by a fast-food restaurant. Kim Smite, Joanne's cousin, spent the entire year living with the Smithswith the exception of the month of September, when he resided in Las Vegas with his best friend. 23-year-old Kim Smite made$ 3,000 as a fitness instructor. The Smiths present the following information for 2024: Lottery winnings (net of purchase price): $1,500 - Ordinary dividends: $2000 (qualified, $1,800) - Mortgage interest paid: $16,000 - - Self-employment income (net): $150000. Pass-through income from an S-corporation: $4,000 - One-half of self-employment taxes paid: $10,000 - Property taxes paid: $9,000 Short-term capital gains: $19000 John Smith started receiving $ 1,000 in monthly payments from an annuity on March 1st, 2024. He had paid$ 250000 for the annuity many years prior in the hopes of receiving 275 monthly payments. 1. Are any of the people mentioned eligible to be the Bacon's dependent? Why not, or why not? Make sure to address each potential dependent. 2. How much of John Smith's annuity will be counted toward their income in 2024? 3. What is the Smith's 2024 taxable income? You can disregard the Deduction for Qualified Business Income when calculating your response and assume there are no restrictions on any itemized deductions. Joanne Smith was born in 1948. John Smith, Joanne's husband, was born in 1940. They are both not blind. They gave these following people more than 50% of their support throughout the year. Their 24-year-old son, Shuan Smith, spent the entire year with them while he was a full-time college student. Jenings also made$ 4,999 per year while employed by a fast-food restaurant. Kim Smite, Joanne's cousin, spent the entire year living with the Smithswith the exception of the month of September, when he resided in Las Vegas with his best friend. 23-year-old Kim Smite made$ 3,000 as a fitness instructor. The Smiths present the following information for 2024: Lottery winnings (net of purchase price): $1,500 - Ordinary dividends: $2000 (qualified, $1,800) - Mortgage interest paid: $16,000 - - Self-employment income (net): $150000. Pass-through income from an S-corporation: $4,000 - One-half of self-employment taxes paid: $10,000 - Property taxes paid: $9,000 Short-term capital gains: $19000 John Smith started receiving $ 1,000 in monthly payments from an annuity on March 1st, 2024. He had paid$ 250000 for the annuity many years prior in the hopes of receiving 275 monthly payments. 1. Are any of the people mentioned eligible to be the Bacon's dependent? Why not, or why not? Make sure to address each potential dependent. 2. How much of John Smith's annuity will be counted toward their income in 2024? 3. What is the Smith's 2024 taxable income? You can disregard the Deduction for Qualified Business Income when calculating your response and assume there are no restrictions on any itemized deductions.
Expert Answer:
Answer rating: 100% (QA)
1 Shuan Smith is eligible to be the Smiths dependent as he is their son and ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
This assignment requires you to complete the 2022 tax reporting for a fictional woman named Anna Smith. Question 1 T1 - step 4 - line 66 This is Anna's taxable income Answer: Question 2 T1 - step...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
The people on Coral Island buy only juice and cloth. The CPI market basket contains the quantities bought in 2016. The average household spent $60 on juice and $30 on cloth in 2016 when the price of...
-
The file AccountingPartners contains the number of partners in a cohort of rising accounting firms that have been tagged as "firms to watch." The firms have the following numbers of partners: Source:...
-
Refer to Exercise 17 for the definition of a k out of n system. For a certain 4 out of 6 system, assume that on a rainy day each component has probability 0.7 of functioning, and that on a nonrainy...
-
Management is considering three alternatives to satisfy an urgent need. Each of the alternatives will completely satisfy the need, so no combinations have to be considered. The first costs, operating...
-
Paul Bergey is in charge of loading cargo ships for International Cargo Company (ICC) at the port in Newport News, Virginia. Paul is preparing a loading plan for an ICC freighter destined for Ghana....
-
Calculate the total billing amount for Jonas and his associate for their ( 1 ) first client assessment session and ( 2 ) second client assessment session. State whether they are the same or different...
-
It takes 38 mL of 0.75 M NaOH solution to completely neutralize 155 mL of a sulfuric acid solution (H2SO4). What is the concentration of the H2SO4 solution?
-
You are working at a company in the United States. Suppose the business that you work for wants to expand its vegetarian pizza business internationally, and the CEO of the company assigned you to...
-
Laker Company reported the following January purchases and sales data for its only product. The Company uses a perpetual inventory system. Required: 2. Determine the cost assigned to ending inventory...
-
Five (5) Journal Entries are required 3. Journal entries are to be done on communication essentials lectures only. 4. Journal entries are to be typed and double spaced 5. Be sure to include on each...
-
Talk to a sports fan at least two decades older than youa relative or a friend, for instanceand ask that person to recall how being a sports fan was different when he or she was the age you are...
-
All major airlines are faced with the issue of highly volatile oil price as jet fuel is the second largest expense in the airline industry. In order to better manage its operating costs, for example,...
-
For each transaction, determine the amount of revenue or expense, if any, that is recorded under accrual-basis accounting and under cash-basis accounting. (Leave no cells blank - be certain to enter...
-
If the cylinder described in Problem 21.3 were initially heated to 500F, how long would it take for the center of the cylinder to cool to 240F if it were constructed of a. Copper? b. Brass? c. Nickel?
-
During the 1990s, Kenneth Lipper emerged as a leader of the rapidly growing hedge fund "industry" in the United States. Born in 1941, Lipper, the son of a shoe salesman, spent his childhood in a...
-
"The final undergraduate award today is the William J. Upchurch Medal, which is given annually to the outstanding senior in the Hopkins College of Business. Nominations are made by Hopkins faculty...
-
Andrea Jung earned a degree in English literature from Princeton in 1979. Before pursuing a law degree, the 20-year-old Jung decided to take a short break from academics to gain some real-world...
-
Prove Part 1 of Theorem 1.14 using induction. That is, prove that for any non-negative integer \(k\), \[H_{k}(x)=\sum_{i=0}^{\lfloor k / 2floor}(-1)^{i} \frac{(2 i) !}{2^{i} i...
-
Use Theorem 1.13 (Taylor) to find fourth and fifth order polynomials that are approximations to the standard normal distribution function \(\Phi(x)\). Is there a difference between the...
-
Prove Part 2 of Theorem 1.14. That is, prove that for any non-negative integer \(k \geq 2\), \[H_{k}(x)=x H_{k-1}(x)-(k-1) H_{k-2}(x) .\] The simplest approach is to use Definition 1.6. Theorem 1.14....
Study smarter with the SolutionInn App