We already know thatIan and Isabella’s (federal) gross income for 2020 is $101,000and their AGI is $99,000Please Loot at the image and find out1. What is the amount of Ian and Isabella’s total itemized deductions in 2020 (including the deductible taxes of $10,000 and all other itemized deductions)? (*Note: the answer is not $13,000 or $15,000)2. What is Ian and Isabella's 2020 taxable income? They have no QBI deduction. lan and Isabella paid the following expenses in 2020:• Federal income taxes withheld on wages: $9,000• State & local income taxes: $8,000• Property taxes on principal residence: $5,000• Sales tax: $1,000• Interest on credit card used for personal travel: $4,500• Interest on $350,000 mortgage used to purchase principal residence: $2,000• Interest on $20,000 home-equity loan used to improve their principal residence:$1,000• Deductible student loan interest: $2,000• Deductible medical expenses (this is the amount after the % of AGI floor hasbeen applied): $1,000• Unreimbursed employee business expenses (job supplies): $750lan and Isabella's home is worth $550,000. They have proper records to substantiateall expenses.

The assessment of taxable income includes identification of type of taxpayer and his filling status.…

. What is the amount of Ian and Isabella’s total itemized deductions in 2020 (including the deductible taxes of $10,000 and all other itemized deductions)? (*Note: the answer is not $13,000 or $15,000) 2. What is Ian and Isabella's 2020 taxable income? They have no QBI deduction.

. What is the amount of Ian and Isabella’s total itemized deductions in 2020 (including the deductible taxes of $10,000 and all other itemized deductions)? (*Note: the answer is not $13,000 or $15,000) 2. What is Ian and Isabella's 2020 taxable income? They have no QBI deduction.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter12: Alternative Minimum Tax

Section: Chapter Questions

Problem 44P

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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

We already know that

Ian and Isabella’s (federal) gross income for 2020 is $101,000

and their AGI is $99,000

Please Loot at the image and find out

1. What is the amount of Ian and Isabella’s total itemized deductions in 2020 (including the deductible taxes of $10,000 and all other itemized deductions)? (*Note: the answer is not $13,000 or $15,000)

2. What is Ian and Isabella's 2020 taxable income? They have no QBI deduction.

lan and Isabella paid the following expenses in 2020:
• Federal income taxes withheld on wages: $9,000
• State & local income taxes: $8,000
• Property taxes on principal residence: $5,000
• Sales tax: $1,000
• Interest on credit card used for personal travel: $4,500
• Interest on $350,000 mortgage used to purchase principal residence: $2,000
• Interest on $20,000 home-equity loan used to improve their principal residence:
$1,000
• Deductible student loan interest: $2,000
• Deductible medical expenses (this is the amount after the % of AGI floor has
been applied): $1,000
• Unreimbursed employee business expenses (job supplies): $750
lan and Isabella's home is worth $550,000. They have proper records to substantiate
all expenses.

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