Old Granddad dies and you are the sole beneficiary of his $1M life insurance policy. The insurance company delays paying for nine months, however, so is re-quired by state law to pay $50,000 of interest in addition to the $1M. How much of the $1,050,000 that you finally receive must you report (as gross income) on your 1040, and why?

Q: Andrew​, who is​ single, retired from his job this year. He received a salary of $22,000 for the…

A: Adjusted gross income (AGI) is calculated by deducting deductions for AGI from the gross income.

Q: In 2021, Lance earns $39,000 from his job in total income. He contributes $3,000 to his Roth 401(k),…

A: Roth 401(k) is a account which in which a small contribution is deposited by employee to generate…

Q: Britta has been accepted into a 2-ycar Medical Assistant program at a career school. She has been…

A: $ 6,643.5

Q: Thomas, who is 49 years old, received a distribution from his Roth account of his employer’s 401(k)…

A: The correct answer is (b) $40,000 taxable , $4000 tax penalty  Distribution of Roth account is…

Q: Jed, age 55, is married with no children. During 2019, Jed had  the following income and expense…

A: All amounts are in dollar ($).

Q: Mary is a 47-year old corporate attorney. She earns $225,000 per year and receives group term life…

A: Income from the benefits which has been got by the employee from the employer requires to be…

Q: Camille Sikorski was divorced in 2018. She currently provides a home for her 15-year-old daughter…

A: The amount of deduction from Adjusted gross income is higher of : Standard deduction of $ 18650…

Q: This year Jack intends to file a married-joint return. Jack received $174,000 of salary, and paid…

A:

Q: Lokalalo knows that not all their customers will pay so they take out insurance for that purpose.…

A: Following is the answer to the given question

Q: In January of year 0, Justin paid $5,400 for an insurance policy that covers his business property…

A: a. In this case, the insurance premium paid belongs to 12 months of the current year and it does not…

Q: This year Jack intends to file a married-joint return. Jack received $175,000 of salary, and paid…

A: Compute modified adjusted gross income (MAGI) of person J as shown below:

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: Jenny, age 24, and her daughter Marie, age 3, moved in with her mother, Barbara, after she separated…

A: Determination of Dependency To determine the dependency criteria the important aspect is the…

Q: Camille Sikorski was divorced in 2018. She currently provides a home for her 15-year-old daughter…

A: Taxable income is the amount on which a tax is levied. It is an income on which a person has to pay…

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

A: Since they follow cash basis of accounting entire Insurance expense paid will be available as…

Q: Larry purchased an annuity from an insurance company that promises to pay him $1,000 per month for…

A: The information is given in the question: 1. Amount of payment by the insurance company = $ 1,000…

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: After one year from the death of her husband, Nancy Matyas received the proceeds of life insurance…

A: Taxable Income:- It is the income on which one pays tax as per rate prescribed by the taxation…

Q: Belinda spent the last 60 days of 2021 in a nursing home. The cost of the services provided to her…

A: Calculation of available exclusion: Available Exclusion = Daily limit - Cost of stay = $24,000 -…

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

A: Here insurance policy covered for the current year is only for 9 months period That is from APRIL TO…

Q: .Mrs. A took out a life insurance policy for 500,000 naming her son as beneficiary. Under the terms…

A: SOLUTION EVEN THOUGH MRS A OUTLIVED THE POLICY , THE ENTIRE PROCEEDS ARE NOT AUTOMATICALLY TAX…

Q: Cal withdrew $800 from his HSA to pay for non-medical expenses. He had to pay 25% income tax plus a…

A: Withdrawal Amount = $800 Income Tax = 25% Penalty = 10%

Q: Linda bought a life insurance policy whereby she insured herself for 1 million for a period of 10…

A: The gross income from the insurance policy is the difference between the maturity amount received…

Q: Randy and Rachel are eligible for a $fill in the blank 1 adoption credit in 2020. b.  Assume the…

A: a. Result: Maximum adoption tax credit available is up to $14,300 per adopted child in 2020.

Q: Sreg died on July 1, 2021, and left Lea, his wife, a $45,00o life insurance policy which she elects…

A: As per IRS Gross income is total total income which is chargeable to tax. It doesn't include exempt…

Q: Mary owns a home with a with a replacement value of $331,195. She purchased home insurance in the…

A: According to the "80% rule of home insurance", the replacement value of the house should be insured…

Q: Belinda spent the last 60 days of 2019 in a nursing home. The cost of the services provided to her…

A: Tax refers to the amount charged by the government on the income earned by the companies and…

Q: Jody is a physician's assistant (not covered by a retirement plan) with a salary of $40,000 from the…

A: Solution Your traditional IRA contribution may be tax deductible . The deduction may be limited if…

Q: Eric and Samantha, joint filers, had AGI of $90,000 and will itemize for the year. They endured the…

A: Item  Cost / market value Received from insurance Balance cost received  $100 per incident to be…

Q: On the day his daughter was born, Engineer Ang deposited to a trust company a sufficient amount of…

A: A = P (1 + r/n)^(nt), where P is the initial principal balance, r is the interest rate, n is the…

Q: On the day his daughter was born, Engineer Ang deposited to a trust company a sufficient amount of…

A: a) Annual payments "PMT" = 50000 Number of payments "n" = 8 Interest rate "r" = 8% Future value of…

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: A 67-year-old taxpayer retires this year and receives the first payment on an annuity that was…

A: Annuity Annuity is the investment which become payable after retirement and  Investor receive the…

Q: Natalie owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses…

A: Balance sheet is an important part of any organisation as it shows the the company's true face in…

Q: Darius, an unmarried individual, lived with his 15 year old daughter, Jackie, during all of 2021.…

A: Taxable income: It refers to the total income of the taxpayer that is subjected to the tax charges.

Q: Father dies in 2018 and leaves his entire estate of $6,350,000 to Son.  Father’s estate pays…

A: Taxes paid  on Father's estate is $250,000 federal estate tax & $100,000 Illinois estate tax.…

Q: Mrs. A took out a life insurance policy for 500,000 naming her son as beneficiary. Under the terms…

A: SOLUTION TAXABLE INCOME IS THE PORTION OF INDIVIDUALS OR A COMPANY'S INCOME USED TO CALCULATE HOW…

Q: Edna spent the last 80 days of 2021 in a nursing home. The cost of the services provided to her was…

A: The calculation of daily statutory cost has been made as follows: Daily statutory cost=Number of…

Q: Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in…

A: Rental income: Income which one earned from either commercial or personal property let out and earns…

Q: Theresita Guadalupe insured his life with an insurance company. Under the contract, she will pay a…

A: The question is related to the Insurance Contract. Income in respect of insurance contract will be…

Q: Roger is required under a 2014 divorce decree to pay $500 of alimony and $200 of child support per…

A: As per IRS, Child Support Payments are not eligible to claim as deduction by payer nor is taxable to…

Q: The year before last, Victor earned $85,000 from his retail management position, and Maria began…

A: Tax liability is the amount owed to the government by the income earner and this is computed by…

Q: Andrew​, who is​ single, retired from his job this year. He received a salary of $24,000 for the…

A: Gross income: It is the total of income of the individual from all the sources of income earning.

Q: At the age of 50, Lala gave money to the insurance company with an agreement that Lala would receive…

A: Annual Amount = 2,000,000 End of year payments Assuming Interest Rate = 10%

Q: bby, a single taxpayer, purchased 10,000 shares of § 1244 stock several years ago at a cost of $20…

A: As per section 1244, ordinary loss is allowed up to $50,000 for individual returns and up to…

Q: Sam died on January 15, 2011 and left his wife, Terry, an insurance policy with a face value of…

A: Point of Taxation: In the event of demise of the insured, the beneficiary receives proceeds from the…

Q: Roger takes out a $500,000 mortgage in January 23021 to purchase a primary residence with a fair…

A: Income interest is a borrowing expenditure that may be deducted from taxable income by filing a…

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…

Q: Shellie, a single individual, received her Bachelor’s degree in 2019, and took a job with a salary…

A: SOLUTION- ACCORDING TO SECTION 80 E   IF YOU HAVE TAKEN AN EDUCATION LOAN TO FUND YOUR HIGHER…