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Starting in 2011 Chuck and Luane have been purchasing Series EE bonds in their name to use for the higher

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Starting in 2011 Chuck and Luane have been purchasing Series EE bonds in their name to use for the higher education of their daughter Susie, who currently is age 18. During the year, they cash in $12,000 of the bonds to use for freshman year tuition, fees, and room and board. Of this amount, $5,000 represents interest. Of the $12,000, $8,000 is used for tuition and fees and $4,000 is used for room and board. Chuck and Luane’s AGI, before the educational savings bond exclusion, is $132,200. Review § 135, and answer the following questions.

a. Determine the tax consequences for Chuck and Luane, who will file a joint return, and for Susie.

b. Assume that Chuck and Luane purchased the bonds in Susie’s name. Determine the tax consequences for Chuck and Luane and for Susie.

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a The savings bonds qualify as educational savings bonds The savings bonds were issued to Chuck and …View the full answer


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Related Book For  answer-question
South Western Federal Taxation 2023 Comprehensive Volume

South Western Federal Taxation 2023 Comprehensive Volume

ISBN: 9780357719688

46th Edition

Authors: Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young

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Question Details
Chapter # 5- The Deduction for Qualified Business Income for Noncorporate Taxpayers
Section: Discussion Questions
Problem: 53
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Question Posted: September 24, 2023 07:13:38
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