For each of the following independent situations, indicate the amount the taxpayer must include in gross income and explain your answer: a.       Tabitha won $1500 in the scratch-off state lottery.  There is no state income tax. b.       Matt won a compact car worth $20,000 in a TV game show.  Matt plans to sell the car next year. c.       Milton Boyes won the Nobel Peace Prize of $500,000 this year.  Rather than take the prize, Milton designated that the entire award should go to Spearhead Charity, a tax-exempt organization.

Q: Dexter owns a large tract of land and subdivides it for sale. Assume that Dexter meets all of the…

A: Working Notes: 1. Selling Price = $52,200 * 8 = $417,600 2. Selling Expenses = $2,088 * 8 = $16,704…

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Q: Jarrod receives a scholarship of $33,400 from East State University to be used to pursue a…

A: In accordance with provision of IRS, the following education related expenses shall be excluded from…

Q: Simone, a single taxpayer, bought her home in Orlando 25 years ago for $55,000. She has lived…

A: Given that: Purchase price of home = $55000 Sale value of home = $405000

Q: While vacationing in Florida in November, Sally was seriously injured in an automobile accident (she…

A: Taxpayer refers to individual, person or firm who are liable to pay the tax to the regulatory…

Q: osh is a MFJ taxpayer and decides to return to school to get a graduate degree at night school while…

A: Income tax:   It is the amount a person is liable to pay on the earned amount in an accounting year.…

Q: Bernice is a sole proprietor who provides dog walking services to a number of neighborhood dog…

A: There are two system of accounting for recording the revenue and expenses for a tax payer. Taxpayers…

Q: During the year, Rajeev makes the following transfers: $1,000 to his mayor’s reelection campaign.…

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Q: In January of year 0, Justin paid $6,200 for an insurance policy that covers his business property…

A: since Justin used cash method of Accounting entire policy would be allowed as deduction when paid ..…

Q: Sharon runs a lawn mowing business (which is GST registered) and she decides to employ her son Keith…

A: Tax is the mandatory amount that is paid by the taxpayer to the state or local government from their…

Q: Mr. Craft purchases his first home in 2011 at a cost of $89,000. In 2016, the home is sold for…

A: The capital gains arise when the capital asset value increases and it is sold. In case a capital…

Q: Sydney, a single taxpayer who itemizes deductions, had $80,000 in adjusted gross income in year 2.…

A: The maximum amount of charitable contribution allowed as deduction is 50% of the AGI.

Q: In January of year 0, Justin paid $6,200 for an insurance policy that covers his business property…

A: IRC requires both the cash and accrual taxpayers to capitalize the prepaid expense if that expense…

Q: Determine the total amount that will qualify for itemized deduction by the taxpayer.  Reginald’s…

A: Tax is the amount which is paid to the government by the taxpayer which is calculated on the taxable…

Q: Wanda is a single taxpayer and an elementary school teacher. She also tutors students in her home as…

A: GIVEN, School supplies for classroom= $300 Supplies and material for tutoring = $400 she uses 200…

Q: Emily, who is single, has been offered a position as a city landscape consultant. The position pays…

A: Taxable Income is the net amount of income on which tax is imposed or determined using appropriate…

Q: value of the same on the date awarded. Huihana is in the highest tax bracket for single taxpayers.…

A: Gross receipts are the total amount of any cash or property received before any charges or other…

Q: Ian, 37, and Isabella, 36, are married and file a joint tax return.  They have one child, Ingrid…

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Q: For each of the following independent cases, indicate the amount of gross income that must be…

A: Prizes and awards, received in the US, are also taxable. But the government has provided certain…

Q: Martin, a 50-year-old single taxpayer, paid the full cost of maintaining his dependent mother in a…

A: Martin is the head of household, hence standard deduction will be $18,350 for 2019.

Q: arah is a cash-method, calendar-year taxpayer, and she is considering making the following cash…

A: A cash-method, calendar-year taxpayer is that tax payer who will report income and deductions in…

Q: Robyn is a taxpayer painted her office, which she uses for her business purposes. She has paid…

A: Robyn is a tax payer painted her office which is used for the purpose of business; she has paid…

Q: Susan, a single taxpayer, bought her home 25 years ago for $30,000. She has lived in the home…

A: Tax is a liability calculated on the income earned and paid to the government. It acts as revenue…

Q: Campbell, a single taxpayer, earns $400,000 in taxable income and $2,000 in interest from an…

A: Marginal Tax rate = Change in Tax / Change in Taxable Income

Q: Right before his death from a terminal illness, Shing makes a gift of $890,000 cash that he had…

A: The concepts are related to this question 1. it has utilized his Lifetime Exemption available. 2. $…

Q: Tyler, a single taxpayer, generates business income of $3,000 in 2016. In 2017, he generates an NOL…

A: As per IRS, the net operating losses are the excess of tax-deductible expenses over taxable revenues…

Q: A tax payer is treating real property used solely for business purposes for new real property to be…

A: The question is related to taxation. The details are given regardong the same as under Real Property…

Q: In each of the following independent situations, indicate whether the trans- fer is subject to the…

A: FEDERAL GIFT TAX  A GIFT TAX IS A FEDERAL TAX APPLIED TO AN INDIVIDUAL GIVING ANYTHING OF VALUE TO…

Q: Determine the total amount that will qualify for itemized deduction by the taxpayer.  Rita needed…

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Q: Carrie, a single taxpayer, finished her undergraduate degree using money from a student loan. She…

A: Tax benefits reduce your financial burdens. The term "tax benefit" refers to any tax law that allows…

Q: Advise Cheryl of her tax consequences from the following transactions: (a) Donation of $300 to the…

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Q: Reynolds are married and always Archie earned $32,000 in wages and Tina earned S • The Reynolds paid…

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Q: Kimberly is a self-employed taxpayer. She recently spent $3,300 for airfare to travel to Italy. What…

A: Total deductible amount is the total amount spent on the business operations.

Q: Sally is self-employed as a consultant and she itemizes deductions every year. She has the following…

A: solution concept State and local income taxes are deductible as per the provisions of the income tax…

Q: Kimberly is a self-employed taxpayer. She recently spent $3,300 for airfare to travel to Italy. What…

A: Since the trip appears more of personal purpose, as the maximum number of days are spent on personal…

Q: ngle taxpayer living in Seattle, Washington, with adjusted gross income for the 2020 tax year of…

A: In the given case, Martin’s adjusted gross income for the year is $59,000. He has paid various…

Q: Kimberly is a self-employed taxpayer. She recently spent $3,300 for airfare to travel to Italy. What…

A: The purpose of the trip is business, the entire amount can be claimed as a deduction.

Q: Emma received the following items during the year pursuant to a divorce decree: Family SUV with a…

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Q: Alan owns a ranch in Kansas. During the year, a tornado damaged one of his barns and destroyed some…

A: Please see the next step for the solution

Q: Kimberly is a self-employed taxpayer. She recently spent $3,300 for airfare to travel to Italy. What…

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Q: Andrea entered into a § 529 qualified tuition program for the benefit of her daughter, Joanna.…

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Q: How much of Darlene's distribution is subject to the 10% additional tax?

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