Gadubhai Required information[The following information applies to the questions displayed below.]Read the following letter and help Shady Slim with his tax situation. Assume that gross income is $172,900 (which consistsonly of salary) and filing status of single for the purposes of this problem.December 31, 2023To the friendly student tax preparer:Hi, it's Shady Slim again. I just got back from my 55th birthday party, and I'm told that you need some more informationfrom me in order to complete my tax return. I'm an open book! I'll tell you whatever I think you need to know.I had to move this year after getting my job at Roca Cola. I moved on February 3 of this year, and I worked my job at RocaCola for the rest of the year. I still live in the same state, but I moved 500 miles away from my old house. I hired a movingcompany to move my stuff at a cost of $2,300, and I drove in my car. I got a hotel room along the way that cost me $65 (1love Super 8!).Can you believe I'm still paying off my student loans, even after 15 years? I paid a total of $900 in interest on my oldstudent loans this year.Since Roca Coca (my employer) never started a retirement plan, I decided I should probably start saving for my goldenyears. I contributed $3,000 to what the bank referred to as a regular IRA (or was it a REM?). Oh yeah, I also did a littleinvesting this year. I bought a limited partnership interest in Duds Ltd. for $10,000. I thought it was going to be a realwinner, but this year they took a bath. My portion of the loss was $8,000. Well, at least I did not actually do any work forDuds, and I get the tax deduction - right?That should be all the information you need right now.a. Calculate the AGI.Less:AGI

Itemized deductions help a many taxpayers lower their periodic gains by tax bill less than the same…

Answered: a. Calculate the AGI. Less: AGI

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter12: Alternative Minimum Tax

Section: Chapter Questions

Problem 3RP

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Required Information [The following Information applies to the questions displayed below.] Read the following letter and help Shady Slim with his tax situation. Please assume that his gross income is $173,210 (which consists only of salary) for purposes of this problem. December 31, 2023 To the friendly student tax preparer: HI, It's Shady Slim again. I just got back from my 55th birthday party, and I'm told that you need some more information from me in order to complete my tax return. I'm an open book! I'll tell you whatever I think you need to know. Let me tell you a few more things about my life. As you may recall, I am divorced from my wife, Alice. I know that it's unusual, but I have custody of my son, Shady Jr. The judge owed me a few favors and I really love the kid. He lives with me full time and my ex-wife gets him every other weekend. I pay the vast majority of my son's expenses. I think Alice should have to pay some child support, but she doesn't have to pay a dime. The…
Your qualitative answers should be written in full sentences with depth to your responses when needed. For questions and problems requiring computations, you need to share your supporting calculations. 1a. Jim files his return one month after the due date and pays the remaining $8,000 of tax owed by him. What are his delinquency penalties? 1b. Why is income-shifting considered such a major tax planning concept? 1c. Olivia is being audited by the IRS. The revenue agent determines that certain expenses that were deducted on her return are not valid, and he accordingly makes adjustments to her tax liability. Upon receipt of her 30-day letter, she phones you, a CPA, for advice regarding possible future action on the matter. What options would you discuss with Olivia? 1d. Compute the taxable income for 2020 under each of the following circumstances: Jim is married and files a joint return. Jim and his wife have two dependent children. They have adjusted gross income of $30,000 and…
As a newly hired IRS trainee, you have been asked to calculate the amount of tax refund or tax owed for the taxpayer (in $). (Enter a positive value for the amount.) Name Trent Tax Tax Liability Credits Other Taxes $5,898 $1,331 $885 Need Help? Read It Payments $6,700 Refund/Owe (Select one) --Select--- Amount
Choosing and preparing an individual tax form. Liam McKenzie is single, graduated from college in 2018 and began work as a systems analyst in July of that year. He is preparing to file his income tax return for 2018 and has collected the following financial information for that calendar year. A blank Form 1040 and Schedule 1 may be obtained at www.irs.gov. Scholarship used to pay Tuition $ 5,750 Scholarship used to pay room, and board 1,850 Salary 55,000 Interest income 185 Itemized Deductions 3,000 Income taxes withheld 2,600 Prepare Liam’s 2018 tax return, using a $12,000 standard deduction and the tax rates given in Exhibit 3.3.
For the following taxpayers, determine if they are required to file a tax return in 2023. Problem 8-80 Part a (Algo) a. Ricko, single taxpayer, with gross income of $15,800.
85. Which of the following tax return preparers must file federal income tax returns electronically? (Search Chapter 8) O a. Bob, who provides tax assistance under the Volunteer Income Tax Assistance program O b. Ellen, who prepares a return of the employer by whom she is employed O c. Peter, a tax return preparer who expects to file 20 individual income tax returns Od. Lynn, who prepares 20 tax returns as a fiduciary
Han and Leia have come to you for tax help for their 2023 tax year. What issues does their set of facts present to you as their tax advisor? What advice do you have for them? Please make any assumptions that you need in-order to address and respond to the issues presented by the fact pattern. Clearly state the assumptions that you make. It is advisable to utilize a memorandum style in which you address the facts, issues, analysis, and conclusions. Support your answers with cites to code, regulations, cases, rulings, IRS publications or other research data. 1. In 2023 the Village of Mos Eisley valued the property at $3,150,000 and assessed real property taxes on the both the home and the out-parcels of property. Jobba the Assessor determined that the home represented 30% of the value and the out-parcels represented the remaining 70% of the value for the property. The real estate taxes on the Lake Tatooine property are $31,500 per year.
2. Taxes paid for a given income level Suppose that Hubert is preparing to file his taxes. He is single and currently lives in Chicago. Hubert earned $205,000 in taxable income in 2022. He reviews the following table, which shows the IRS tax rates for a single taxpayer in 2022. On Annual Taxable Income... Up to $10,275 From $10,275 to $41,775 From $41,775 to $89,075 From $89,075 to $170,050 From $170,050 to $215,950 From $215,950 to $539,900 Over $539,900 The Tax Rate Is... (Percent) 10.0 Hubert calculates that he owes 12.0 22.0 24.0 32.0 35.0 37.0 Based on the IRS table, Hubert calculates that his marginal tax rate is in income taxes for 2022. Hubert then calculates that his average tax rate is when his annual taxable income is $205,000. , based on the annual income level and the amount of taxes he owes for 2022. After figuring out what he owes in taxes in 2022, Hubert decides to ask an accountant for tax advice. The accountant claims that he has found a legal way to shelter $4,000 of…
You are getting ready to prepare a 2022 tax return for your clients Moose and Suzie Okie and are doing some initial calculations. Moose and Suzie have two children, Arva (age 12) and Ralph (age 9). They have provided you with the following information regarding 2022 relevant activities: Moose received a Form W-2 for $60,000 which showed his federal income tax withheld amount was $7,000. Suzie has a residential rental property (cost basis $270,000) which was rented for the whole year for $2,000 per month. Property taxes on the residential rental property: $3,700 and property insurance: $1,785. Suzie spent $500 fixing the sprinklings system and $5,000 for a new roof after a hailstorm. Moose got lucky and won $4,000 gambling on a trip to Las Vegas. Suzie sold her old car for $4,000. She had originally paid $8,000 for it. She also sold a parcel of land for $7,500 on March 7, 2022. She purchased it on January 5th of 2000 for $5,000. What is the total reportable income?
You are getting ready to prepare a 2022 tax return for your clients Moose and Suzie Okie and are doing some initial calculations. Moose and Suzie have two children, Arva (age 12) and Ralph (age 9). They have provided you with the following information regarding 2022 relevant activities: Moose received a Form W-2 for $60,000 which showed his federal income tax withheld amount was $7,000. Suzie has a residential rental property (cost basis $270,000) which was rented for the whole year for $2,000 per month. Property taxes on the residential rental property: $3,700 and property insurance: $1,785. Suzie spent $500 fixing the sprinklings system and $5,000 for a new roof after a hailstorm. Moose got lucky and won $4,000 gambling on a trip to Las Vegas. Suzie sold her old car for $4,000. She had originally paid $8,000 for it. She also sold a parcel of land for $7,500 on March 7, 2022. She purchased it on January 5th of 2000 for $5,000. What is the taxable income?
[The following information applies to the questions displayed below.] In 2023, Juanita is married and files a joint tax return with her husband. What is her tentative minimum tax in each of the following alternative circumstances? Use Tax Rate Schedule. Dividends and Capital Gains Tax Rates for reference. Note: Input all values as positive. Leave no answer blank. Enter zero if applicable. Problem 8-59 Part a (Algo) a. Her AMT base is $111,000, all ordinary income. Description (1) AMT base (2) Dividends taxed at preferential rate (3) Tax on dividends (4) AMT base taxed at regular AMT rates (5) Tax on AMT base taxed at 26% rate (6) Tax on AMT base taxed at 28% rate Tentative minimum tax Amount
2. Taxes paid for a given income level Suppose that Maria is preparing to file her taxes. She is single and currently lives in Miami. Maria earned $110,000 in taxable income in 2022. She reviews the following table, which shows the IRS tax rates for a single taxpayer in 2022. On Annual Taxable Income... Up to $10,275 From $10,275 to $41,775 From $41,775 to $89,075 From $89,075 to $170,050 From $170,050 to $215,950 From $215,950 to $539,900 Over $539,900 The Tax Rate Is... (Percent) 10.0 Maria calculates that she owes 12.0 22.0 24.0 32.0 35.0 37.0 Based on the IRS table, Maria calculates that her marginal tax rate is in income taxes for 2022. Maria then calculates that her average tax rate is when her annual taxable income is $110,000. based on the annual income level and the amount of taxes she owes for 202 After figuring out what she owes in taxes in 2022, Maria decides to ask an accountant for tax advice. The accountant claims that he has found a legal way to shelter $2,000 of…

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