Question $38$

$3$ pts

FACT PATTERN FOR TRAVIS AND TAYLOR:

Travis, age $67,$ and Taylor, age $66,$ are married and have no children and no other dependents $($but they do have a cat$).$ They file MFJ$.$ Their $2024$ tax and other related information is as follows:

$\backslash$table$[[$Total salaries,$$130,000],[$Bank account interest income,$3,000],[$Missouri state bond interest income,$2,500],[1$st place prize in national karaoke competition won by Taylor,$10,000],[$Value of employer provided medical insurance premiums,$7,000],[$Employer paid premiums for $$40,000$ of group term life insurance for Taylor,$400]]$

Starbucks Stock $($purchased $12/15/23$ for $$20,000$; sold $8/3/24$ for $$32,000)$

You Calculate

Starbucks Stock $($purchased $12/15/23$ for $$20,000$; sold $8/3/24$ for $$32,000)$

You Calculate

Tesla Stock $($purchased $10/15/19$ for $$30,000$; sold $2/23/24$ for $ $23,000)$

You Calculate

Life Insurance proceeds received by Taylor, as beneficiary, on a policy owned by her aunt $($the insured$)$ when her aunt died

$40,000$

Dividend income from Samsung $($based in South Korea$)$ stock

Loan from Travis' parents

Gift from Taylor's parents

Interest on General Motors Bonds

$2,000$

$20,000$

$18,000$

$3,500$

Sale of qualified small business stock acquired by Travis on $3/15/15$ for a $$200,000$ cash contribution. The stock was sold on $\frac{3}{21}\frac{?}{24}.$

Alimony paid by Travis in $2024$ as a result of his divorce in $2018.$

Total itemized deductions for Travis and Taylor

Total Federal tax withholdings, estimated payments, and overpayment applied from the prior year return

$2,500,000$

$12,000$

$29,500$

$13,000$