Lionel is an unmarried law student at State University Law School, a qualified educational institution. This year
Question:
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Lionel is an unmarried law student at State University Law School, a qualified educational institution. This year Lionel borrowed $24,000 from County Bank and paid interest of $1,440. Lionel used the loan proceeds to pay his law school tuition. Calculate the amounts Lionel can deduct for higher education expenses and interest on higher education loans under the following circumstances.
- Lionel's AGI before deducting interest on higher education loans is $50,000.
Compute:-
- Deductible interest expense. $
- Deductible education expense. $
Question 2.
In each of the following independent cases, indicate the amount (1) deductible for AGI, (2) deductible from AGI, and (3) neither deductible for nor from AGI before considering income limitations or the standard deduction.
- Tyler paid $85 for minor repairs to the fence at a rental house he owned.
Compute:-
- Deductible for AGI $
- Deductible from AGI $
- Not Deductible. $
Question 3.
This year Jack intends to file a married-joint return with two dependents. Jack received $162,500 of salary and paid $5,000 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid qualified moving expenses of $4,300 and $24,000 of alimony
a. What is Jack's adjusted gross income? Assume that Jack will opt to treat tax items in a manner to minimize his AGI.
Compute:- 1. Jacks’ AGI $
Question 4.
In each of the following independent cases, indicate the amount (1) deductible for AGI, (2) deductible from AGI, and (3) neither deductible for nor deductible from AGI before considering income limitations or the standard deduction
a. Fran spent $90 for uniforms for use on her job. Her employer reimbursed her for $75 of this amount under an accountable plan (and did not report the reimbursement as wages).
Compute:-
- Deductible for AGI. $
- Deductible from AGI $
Question 5.
Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. This year Betty had the following income and expenses. You may assume that Betty will owe $2,502 in self-employment tax on her salon income.
Interest income
$
11,255
Salon sales and revenue
86,360
Salaries paid to beauticians
45,250
Beauty salon supplies
23,400
Alimony paid to her ex-husband, Rocky
6,000
Rental revenue from apartment building
31,220
Depreciation on apartment building
12,900
Real estate taxes paid on apartment building
11,100
Real estate taxes paid on personal residence
6,241
Contributions to charity
4,237
- Determine Betty's AGI. (Amounts to be deducted should be indicated by a minus sign.) (Do not round your intermediate calculations. Round your answer to nearest whole dollar.)
Compute:-
Interest Income $
Salon Income $
Operating income from salon $
Apartment building revenue $
Apartment building income $
AGI $
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver