Comprehensive Problem (Tax Return Problem). Harvey and Betty Duran, both age 37, are married with one dependent child. Determine their taxable income from the following information for 2020, and their tax liability. Both the ABC and XYZ partnerships are passive activities. Assume dividends are taxed as ordinary income.
Comprehensive Problem (Tax Return Problem). Harvey and Betty Duran, both age 37, are married with one dependent child. Determine their taxable income from the following information for 2020, and their tax liability. Both the ABC and XYZ partnerships are passive activities. Assume dividends are taxed as ordinary income.
Chapter7: Deductions And Losses: Certain Business Expenses And Losses
Section: Chapter Questions
Problem 20DQ
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Transcribed Image Text:60. Comprehensive Problem (Tax Return
Problem). Harvey and Betty Duran, both
age 37, are married with one dependent
child. Determine their taxable income from
the following information for 2020, and
their tax liability. Both the ABC and XYZ
partnerships are passive activities. Assume
dividends are taxed as ordinary income.
Harvey's salary
Betty's salary
Dividends received from domestic
corporations (nonqualified)
Interest
Itemized deductions
Net loss from ABC Partnership (acq. 1983)
Net loss from XYZ Partnership (acq. 1988)
Harvey's business income (moonlighting)
Harvey's business deductions
(before home office expenses)
Harvey's home office expenses
Net loss on rental property
Federal Income tax withheld
$45,000
62,000
11,000
7,000
6,920
(14,200)
(6,000)
7,700
22,000
10,500
(31,000)
9,600
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