ce Walton bought one full bitcoin in March 2020. His bases in the coin is $5838. In July 2021, he donated 0.25 of the coin to a qualified charitable organization. The fair market value of a full coin at the time of donation was $33,800. what is his deductible charita
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- LO.6, 8 William, a high school teacher, earns about 50,000 each year. In December 2019, he won 1,000,000 in the state lottery. William plans to donate 100,000 to his church. He has asked you, his tax adviser, whether he should donate the 100,000 in 2019 or 2020. Identify the tax issues related to Williams decision.On June 30, 2019, Kelly sold property for 240,000 cash and a 960,000 note due on September 30, 2020. The note will also pay 6% interest, which is slightly higher than the Federal rate. Kellys cost of the property was 400,000. She is concerned that Congress may increase the tax rate that will apply when the note is collected. Kellys after-tax rate of return on investments is 6%. a. What can Kelly do to avoid the expected higher tax rate? b. Assuming that Kellys marginal combined Federal and state tax rate is 25% in 2019, how much would the tax rates need to increase to make the option identified in part (a) advisable?LO.6, 8 Ramon had AGI of $180,000 in 2020. He is considering making a charitable contribution this year to the American Heart Association, a qualified charitable organization. Determine the current allowable charitable contribution deduction in each of the following independent situations, and indicate the treatment for any amount that is not deductible currently. Identify any planning ideas to minimize Ramon’s tax liability. A cash gift of $95,000. A gift of OakCo stock worth $95,000 on the contribution date. Ramon had acquired the stock as an investment two years ago at a cost of $84,000. A gift of a painting worth $95,000 that Ramon purchased three years ago for $60,000. The charity has indicated that it would sell the painting to generate cash to fund medical research. Ramon has decided to make a cash gift to the American Heart Association of $113,000. However, he is considering delaying his gift until next year when his AGI will increase to $300,000 and he will be in the 32%…
- Ramon had AGI of $181,000 in 2022. He is considering making a charitable contribution this year to the American Heart Association, a qualified charitable organization. Determine the current allowable charitable contribution deduction in each of the following independent situations, and indicate the treatment for any amount that is not deductible currently. Identify any planning ideas to minimize Ramon's tax liability. a. A cash gift of $90,500. In the current year, Ramon may deduct $(. )since his charitable contribution is limited to $(. ) b. A gift of OakCo stock worth $90,500 on the contribution date. Ramon had acquired the stock as an investment two years ago at a cost of $81,450. The stock's value for determining the contribution is $f(. ). The deduction for 2021 is $(. )The remaining $(. ) for fill in the blank 1a2a96f96fad03a_5 years. c. A gift of a painting worth $90,500 that Ramon purchased three years ago…Lindsey Poney created a nongrantor trust in 2018. During 2021, the trust earned $4,000 in ordinary dividends, $1,000 in interest income, and $2,000 in municipal interest. The only expenses were $1,000 in fiduciary fees. What portion of the fiduciary fees are deductible? None of the fiduciary fees are deductible. $571 is deductible. $714 is deductible. $1,000 is deductible.During the current year, 2022, Travis takes out a $40,000 loan, using stock he owns as collateral. He uses $10,000 to purchase a car, which he uses 100% for personal use. He uses the remaining funds to purchase stocks and bonds. He pays $3,200 interest on the loan. Travis also reports the following for the year: AGI without any investment income $130,000 State income taxes paid 8,400Dividend income (qualified dividends) 10,000 Interest income 2,100 Qualified residence interest 7,800Investment expenses (exclusive of interest) 8,000 Net short-term capital gains 7,300Net long-term capital gain 8,600Travis is single. What is his net taxable income?
- In 2020, Gray Corporation, a calendar year C corporation, has a $75,000 charitable contribution carryover from a gift made in 2015. Gray is contemplating a gift of land to a qualified charity in either 2020 or 2021. Gray purchased the land as an investment five years ago for $100,000 (current fair market value is $250,000). Before considering any charitable deduction, Gray projects taxable income of $1,000,000 for 2020 and $1,200,000 for 2021. Should Gray make the gift of the land to charity in 2020 or in 2021? Provide support for your answer.-Calvin’s AGI is $110,000, but the State Museum told Calvin that it plans to sell the painting. What is the Charitable contribution deduction?An individual has an RSP that they are drawing money out of during 2020. TheRRSP has earned dividends of $10,000. The individual withdraws $32,000 from theRRSP. To obtain that much cash, the RSP sells investments worth $32,000 thathave a cost basis of $20,000. What is the individual's 2020 taxable income as aresult of the RRSP? A) 42000 B) 16000 C)19800 D)32000
- 15. For 2022, how much can Siena take as an educator expense deduction for the lab supplies she purchased for her students? a. $0 b. $250 c. $300 d. $600Pedro wants to donate cash in 2021 up to the maximum deductible amount to a local nonprofit hospital to help fight the virus outbreak. What is the maximum amount he can deduct if his AGI is $60,000?Determine the correct value for each of the following questions: 1. Assume that an individual gives cash to the following parties: $25,000 to a charitable organization, $15,000 to her grandson for his college tuition, $8,000 to her granddaughter to buy a car, and $14,000 to her spouse for a trip to France. What amount of gifts is considered taxable? 2. Assume that an individual has given $25,000 to each of his four grandchildren for each of the past three years and $50,000 to a charitable organization. If he wants to make a single gift to each of his four grandchildren, what would the maximum gift per grandchild be in order to avoid all gift tax? 3. Your client made the following gifts last year: $200,000 to each of her three children, $50,000 to her brother, and $10,000 to each of her eight grandchildren. Prior to that, your client made a single gift of $50,000 to each of her two nieces. If she made a gift of $5,348,000 to her sister in the current year, what amount of gift tax would…
