For calendar year 2023, Stuart and Pamela Gibson file a joint return reflecting AGI of $369,400. Their itemized deductions are as follows: Note: All expenses are before any applicable limitations, unless otherwise noted. Casualty loss in a Federally declared disaster area (not covered by insurance; before the 10%-of-AGI limitation but after the $100 floor) Home mortgage interest (loan qualifies as acquisition indebtedness) Credit card interest Property taxes on home O Charitable contributions State income tax Tax return preparation fees $54,400 21,760 1,088 16,320 29,920 19,040 1,632 Round your final answers to the nearest whole dollar. Calculate the amount of itemized deductions the Gibsons may claim for the year.
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- For calendar year 2023, Stuart and Pamela Gibson file a joint return reflecting AGI of $355,100. Their itemized deductions are as follows: Note: All expenses are before any applicable limitations, unless otherwise noted. Casualty loss in a Federally declared disaster area (not covered by insurance; before the 10%-of-AGI limitation but after the $100 floor) Home mortgage interest (loan qualifies as acquisition indebtedness) Credit card interest Property taxes on home Charitable contributions State income tax Tax return preparation fees $72,400 28,960 1,448 21,720 39,820 25,340 2,172 Round your final answers to the nearest whole dollar. Calculate the amount of itemized deductions the Gibsons may claim for the year.For calendar year 2019, Stuart and Pamela Gibson file a joint return reflecting AGI of $375,900. Their itemized deductions are as follows. Note: All expenses are before any applicable limitations, unless otherwise noted. Casualty loss in a Federally declared disaster area after $100 floor (not covered by insurance) $53,200 Home mortgage interest (loan qualifies as acquisition indebtedness) 21,280 Credit card interest 1,064 Property taxes on home 15,960 Charitable contributions 29,260 State income tax 18,620 Tax return preparation fees 1,596 Round your final answers to the nearest whole dollar. Calculate the amount of itemized deductions the Gibsons may claim for the year.Pam and Sam Joseph file a joint return for the calendar year 2018 showing AGI of $350,000. List of their itemized deduction us provided below. Credit card interest Home mortgage interest (loan qualifies as acquisition indebtedness) Casualty loss in a Federally declared disaster area after $100 floor (not covered by insurance) Property taxes on home State income tax Charitable contributions Tax return preparation fees 1000 18,000 $48,500 18,400 19,500 28,500 1,500 All the expenses are that provided above are before any applicable limitation, unless stated otherwise. Determine the amount of itemized deduction Josephs may claim for the year. A) $132,900 B) $98,900 C) $70,000 D) $55,000
- During 2020, Catherine had the following deductions and adjustments to income: Schedule C (Form 1040) expenses of $15,000, standard deduction of $12,400, $8,400 alimony paid, and $3,700 casualty loss attributable to a federal disaster area. Compute her total nonbusiness deductions for NOL purposes. $15,000 $18,700 $20,800 $27,400For calendar year 2020, Jon and Betty Hansen (ages 49 and 50) file a joint return reflecting total income (NOT AGI) of $130,000 before the following potential deductions. They incur the following expenditures: Medical expenses net of reimbursements $12,000 Personal casualty loss (not covered by insurance) before $100 and AGI floors, Federally declared disaster area 10,000 Interest on home mortgage, balance of mortgage < $750,000 8,000 Interest on credit cards 1,000 Student loan interest 2,600 Property taxes on home 6,000 State income tax 5,000 State sales tax 3,000 Charitable contributions 14,000 Gambling losses incurred (gambling winnings reported $5,000) 5,500 Betty’s contribution to her Health Savings Account 1,500 Roth IRA contribution 4,000 a. Show the calculation of AGI starting with the total income shown above of $130,000. List and label each deduction FOR AGI that you are using to compute…Arturo, a calendar year taxpayer, paid $20,300 in medical expenses and sustained a $24,360 casualty loss in 2018 (the loss occurred in a Federally declared disaster area). He expects $14,210 of the medical expenses and $17,052 of the casualty loss to be reimbursed by insurance companies in 2019. How much can Arturo include in determining his itemized deductions for 2018? Disregard %-of-AGI limitations or casualty loss floor in determining your answers. Before considering any limitations (or reductions) on deductions, Arturo can include $____ of the medical expenses and$ ____of the casualty loss when determining his itemized deductions in 2018.
- Which of the following statements regarding the home mortgage interest expense deduction is false for a single taxpayer? Taxpayers may deduct all of the interest paid on up to $1,000,000 of acquisition debt if the debt occurred in January of 2017. Taxpayers may deduct all of the interest paid on up to $750,000 of acquisition debt if the debt occurred in January of 2018. If, in 2021, a taxpayer refinances acquisition debt that was originally incurred in January of 2017, the taxpayer may deduct the interest on up to only $750,000 of the refinanced loan. None of the choices is false.In June 2022, a self-employed taxpayer purchased new equipment for $26,000 to be used in her business. Assuming she has net income from her business of $75,000 prior to the deduction, what is the maximum amount of cost recovery she can deduct rounded to the nearest dollar, assuming she does not elect §179 expense or bonus depreciationAnchor, inc, reports pretax financial income of $100,000 for 2020, S120,000 for 2021, and $140,000 for 2022. The following items cause taxable income on Anchor's income tax return to be different than pretax financial income for 2020: Proceeds from the collection of an officer's life insurance policy in the amount of $10,000. 1. Depreciation on the 2020 tax return is greater than on the income statement by $24,000. That difference will reverse over the following two years. 2. 3.Rent collected on the tax return is greater than that recognized on the 2020 income statement by $18,000. That amount will reverse in 2021. There were no additional originating differences during the years 2020 through 2022, and there were no deferred income tax balances at January 1, 2020. Anchor's income tax rate for all three years 2020- 2022 was 20%. REQUIRED: 1. Compute taxable income on the income tax return for each of the years 2020, 2021 and 2022. Prepare the journal entries to record Anchor's income…
- A Single taxpayer has a state AGI of $765,000 and federal AGI of $785,000. Itemized deductions total $55,000 under both federal and state law (No adjustments). The total amount of medical expense deduction included in that figure is $17,500. What is the amount of itemized deductions that can be claimed on the state return? Their AGI level limits all itemized deductions to $0. $25,000 - The total $55,000 minus the $30,000 from the "80% of itemized deductions" calculation. $19,570 - The total $55,000 minus the $35,429.76 from the "6% of the excess" deduction limitation calculation. They can claim all $55,000 of itemized deductions without limitation.Connie and Dave Barney are married and file a joint return. They have an Adjusted Gross Income of $120,000 for the year 2022. They incurred the following expenses and losses during the year. Calculate their itemized deductions for the year. Show all calculations for partial credit. Casualty loss in a federally declared disaster area before the $100 floor (no insurance proceeds) 22,800 Home mortgage interest 8,000 Credit card interest 1,000 State and local taxes 2,000 Real estate taxes 5,000 Charitable contributions: Cash of 2,000 and FMV of clothing given to Goodwill of 1,000 (cost of 10,000) ? Medical expenses (before the limitation) 4,000 Union dues 1,000Dainty included the following items in pretax accounting income of 2020:• Litigation loss estimated at P75,000 which will become tax deductible when settled in the future.• Goodwill impairment of P87,500 which will never be deductible for income tax expense.• Revenue from an installment sale of P112,500, which will be recognized as part of taxable income as received over the next three years.• Pretax financial income is P437,500. How much should be the pretax financial income subject to income tax?