John is single and has AGI of $250,000. He also made the following investments. What is his total Net Investment Income Tax for the gains and losses in 2020?Long Term or Short TermTotal Gain/LossLong Term$3,500Short Term-$8,500Long Term -$10,000Short Term$500Short Term-$3,000

Capital gain refers to the increase in an asset value and it becomes realized once the assets are…

Answered: John is single and has AGI of $250,000.…

John is single and has AGI of $250,000. He also made the following investments. What is his total Net Investment Income Tax for the gains and losses in 2020?

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter7: Tax Credits

Section: Chapter Questions

Problem 12MCQ

See similar textbooks

Related questions

Q: During 2020, Rick and his wife, Sara, had the following items of income and expense to report:…

A: Given that: Rick and Sara both are husband and wife

Q: Jerry is single, age 60, and had adjusted gross income of $120,000 in 2020. His deductible expenses…

A: The following computations are done for Jerry who is a single tax payer.

Q: Lyndon, age 24, has a nonworking spouse and earns wages of $36,000 for 2019. He also received rental…

A: Payroll: The total payment that a company is required to pay to its employee for the services…

Q: Rebecca owns a condominium in Chicago with a tax basis of $298,000 at the beginning of the year.…

A: Gross rental receipts refer to the amount collected from tenants for the property provided to them…

Q: Pham, single, has wages of $208,000 and net investment income of $140,000 in 2020. Her AGI (MAGI) is…

A: Medicare tax is also known as hospital insurance tax and it ia a federal employment tax.

Q: Jerry bought his home 15 years ago for $60,000. Three years ago, Jerry married Debbie and she moved…

A: If any married taxpayer files joint return may exclude income up to $500,000 gains from selling…

Q: Akiko, a single taxpayer, incurred higher-than-expected expenses in her active business in 2020. In…

A: An ordinary loss can offset the ordinary income and capital gain (both long term and short term). An…

Q: In 2015, Fred and Elizabeth, who are married and filing jointly, received $29,000 in social security…

A: For married and filing jointly taxpayers, the tax slab rate for $36,000 (AGI) is $1,845 + 15% of…

Q: Phil Cousteau is an accountant. Phil is 47 years old and is married to Claire who is 45 years old.…

A: Tax refers to the compulsory charge levied by the government over the money gained by an entity.

Q: In 2020, Bongbong Jr. created two (2) trusts for his minor son, Chiz. During the year, the two…

A: Trust Here in trust which has subjective to the taxation which are determine by the total net income…

Q: Amy and Mike, a married couple, are considering retirement; they are both aged 65 and supply the…

A: Preparing a retirement cash flow can help us to alleviate our concern and can help us from the rainy…

Q: Pepa Madrigal has operated a very successful bakery for 30years, and has accumalated investment that…

A: When the income is from 10267 to 41775 then tax is 12%.

Q: Mary received stocks as a gift from her father. At the time of gift the stocks have a fair market…

A: To calculate the Tax basis of the stocks received as a gift following 3 amounts should be considered…

Q: Rachel is single and has wages of $162,950 and dividend income of $97,770. She has no investment…

A: Formula: Gross Income = Wages income + Dividend income.

Q: Marc, a single taxpayer, earns $60,000 in taxable income and $5,000 in interest from an investment…

A: It is the average rate at which income of individual is taxed.

Q: Jacob, age 42, and Jane Brewster, age 44, are married and file a joint return in 2020. The Brewsters…

A: Alternative minimum tax (AMT) refers to the minimum amount of tax that an individual supposed after…

Q: Diana sold mutual fund shares she had owned 4 years so that she could use to the proceeds to travel…

A: Given : Capital gain = $ 75258 Marginal tax bracket = 35% And , Capital gain tax rate = 15%

Q: Jones is seriously ill and has $6 million of property that he wants to leave to his four children.…

Q: Harvey is a self-employed accountant with earned income from the business of $120,000 (after the…

A: Retirement Plan: Retirement plan is the retirement income goals of an individual. It includes…

Q: Tom sold mutual shares he had owned 3 years so that he could use the proceeds to return to college.…

A: The capital gains will be treated long-term capital gains as they are held for more than 3 years.…

Q: Jane has $2,000 of dividend income and $3,000 of capital gains in her equity investment in 2020. Her…

A: Jana has earned total: 2000+3000=5000Since the dividend tax credit is not available for tax…

Q: During the financial year 2020/2021, Jessy made a capital gain of $33,000 on the sale of her shares…

A: The rise in the worth of a financial asset when it is sold is referred to as a capital gain.…

Q: How much is the total donor's tax due of Spouses Oredan?

A: Donation tax is the tax which has to be charged on the donations made during the year and the…

Q: Mike, a single taxpayer, purchased a house 20 years ago for $30,000. He sells the house in December…

A: Capital Gain : Capital gain refers to the appreciation in the value of the asset's value over the…

Q: Mark files as a head of household in 2020 and has taxable income of $130,000, including the sale of…

A: Tax: It is the amount that is paid for the services the government has rendered to the public. It is…

Q: Phil and Susan Hammond are married taxpayers filing a joint return. The couple have two dependent…

A: On Form 8949 first part is related to short term capital gain and part 2 on page 2 is related to…

Q: Melissa had a $200,000 long-term capital gain when she sold some of her Bitcoin in 2021, bringing…

A: When a capital asset is sold, the phrase capital gain refers to the rise in its value. Simply put, a…

Q: Calculate the amount of the 3.8 percent net investment income tax she must pay.

A: NIIT (net investment income tax)will be applied to net investment income to the extent that modified…

Q: Maria made $100,000 from long-term investments and Steve made $100,000 from wages. Both are filing…

A: (1) Tax Payer - Maria : (a) Income from Long-term Investments = $ 100,000 (b) Status = Single (2)…

Q: Donald, a wealthy banker, has a 24-year-old son, Junior, that has struggled to keep a job. In 2018,…

A: Calculate the maximum credit available.Tax liability of person J is considered as the maximum credit…

Q: In 2018, Max is 85 years of age and single. He received Social Security payments totaling $14,000…

A: For 2018 attached are the tax brackets for those filing as singles. IRA is taxable till $6500 for…

Q: Michael earns $10,000, and his tax liability for the current year is $8,000, double what it was the…

A: The tax liability refers to the part of taxable income which becomes liability of taxpayer towards…

Q: Kim's net worth at the beginning of the year is $250,000. Across the year she earns $60,000 before…

A: The amount of assets and liabilities would be resulted the net worth. It is the assets over the…

Q: his parents. Malik earned wages of $2,500 and he had investment in

A: A tax is a compulsory contribution or financial charge levied by the government on the income earned…

Q: Peter's gross income is $80,000 a year, and Wendy earns $100,000 a year. They put $3,000 each into…

A: a. Gross income = Peter’s gross income + Wandy gross income = $80000 + $100000 = $180000 b.…

Q: Mike is single, age 67, and has gross income of $150,000. His expenses are as follows: Alimony paid…

A: Taxable income refers to base income on which person is liable to tax . It include some or all items…

Q: Christina had a $12,000 gain on the sale of stock purchased three years ago, a $4,000 loss on…

A: Given information: Long-term capital gain on sale of stock = $12,000 Short-term capital loss from…

Q: Rachel is single and has wages of $150,000 and dividend income of $90,000. She has no investment…

A: Net investment income tax is part of income tax which is charged on the investment income like,…

Q: Javier and Anita Sanchez purchased a home on January 1, 2021, for $600,000 by paying $200,000 down…

A: After Tax Interest Cost: The after-tax cost of debt is equal to the interest paid on debt minus any…

Q: Kevin is 38 years old, and his current gross monthly income is $3,800. Given an average personal tax…

A: Net income is defined as the income left with the business entity or an individual after paying off…

Q: Melissa sold some of her Bitcoin in 2021 for a $200,000 long-term capital gain, bringing her total…

A: When a capital asset is sold, the phrase capital gain refers to the rise in its value. Simply put, a…

Q: Pepa Madrigal has operated a very successful bakery for 30 years, and has accumulated investment…

A: Rate of tax = 12% Single taxpayer from 10276 to 41775 is taxed at the rate of 12%.

Q: Sean, who is single, received social security benefits of $8,000, dividend income of $13,000, and…

A: Given information is: Social security benefits = $8000 Dividend Income = $13000 Interest Income =…

Q: Michelle had a $200,000 long-term capital gain when she sold part of her Bitcoin in 2021, increasing…

A: When a capital asset is sold, the phrase capital gain refers to the rise in its value. Simply put, a…

Q: John is filing taxes individually, his salary is $102,000, he also received $5,000 on interest from…

A: Hi, since you have asked a question with multiple subparts, we are solving the 1st 3 subparts for…

Q: Kirsy , a single taxpayer, has taxable income of $40,000 and is in the 12% tax bracket. During 2021,…

A: Correct option is D i.e 12% × 23,000 Explanation:

Q: Ted Higgins is a single taxpayer with an AGI of $150,000, Taxable income of $90,000 and calculated…

A: Tax is the liability which has paid by the individual and the corporation to the Federal Government…

Q: In 2020, Courtney, 16 and a dependent of her mother, had earned income of $4,000 and interest income…

A: Taxable income refers to the income which is subject to tax as per the government's regulations. All…

Q: Elsie, single, had an AGI of $134,712 in 2020. All of her income was from wages. Elsie owns 100% of…

A: The rental real estate loss allowance is a United States federal tax deduction available to…

Question

John is single and has AGI of $250,000. He also made the following investments. What is his total Net Investment Income Tax for the gains and losses in 2020?

Long Term or Short Term	Total Gain/Loss
Long Term	$3,500
Short Term	-$8,500
Long Term	-$10,000
Short Term	$500
Short Term	-$3,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Brad and Angie are married and file a joint return. For year 14, they had income from wages in the amount of 100,000 and had the following capital transactions to report on their income tax return: What is the amount of capital loss carryover to year 15? a. (155,000) b. (152,000) c. (132,000) d. (125,000)
In 2019, Tim, a single taxpayer, has ordinary income of $29,000. In addition, he has $2,000 in short-term capital gains, long-term capital losses of $10,000, and long-term capital gains of $4,000. What is Tim's AGI for 2019? $26,000 $27,000 $29,000 $32,000
In 2019, Lou has a salary of $53,300 from her job. She also has interest income of $1,600 and dividend income of $ 400. Lou is single and has no dependents. During the year, Lou sold silver coins held as an investment for a $7,000 loss. Calculate the following amounts for Lou: Adjusted gross income $ ____________________ Standard deduction $ ____________________ Taxable income $ ____________________
Leroy and Amanda are married and have three dependent children. During the current year, they have the following income and expenses: Salaries 120,000 Interest income 45,000 Royalty income 27,000 Deductions for AGI 3,000 Deductions from AGI 9,000 a. What is Leroy and Amandas current year taxable income and income tax liability? b. Leroy and Amanda would like to lower their income tax. How much income tax will they save if they validly transfer 5,000 of the interest income to each of their children? Assume that the children have no other income and that they are entitled to a 1,050 standard deduction.
Chelsea, who is single, purchases land for investment purposes in 2014 at a cost of 22,000. In 2019, she sells the land for 38,000. Chelseas taxable income without considering the land sale is 100,000. What is the effect of the sale of the land on her taxable income, and what is her tax liability?
Soong, single and age 32, had the following items for the tax year 2019: Salary of 30,000. Interest income from U.S. government bonds of 2,000. Dividends from a foreign corporation of 500. Sale of small business 1244 stock on October 20, 2019, for 20,000. The stock had been acquired two years earlier for 65,000. Business bad debt of 4,000. Nonbusiness bad debt of 5,000. Sale of small business 1244 stock on November 12, 2019, for 4,000. The stock had been acquired on June 5, 2019, for 800. Sale of preferred stock on December 4, 2019, for 40,000. The stock was acquired four years ago for 18,000. Total itemized deductions of 25,000 (no casualty or theft). a. Determine Soong's NOL for 2019- b. Assuming that Soong had taxable income for each of the last five years, deter mine to which years the 2019 NOL should be applied.