a. Explanation Only $4,800 could be deducted as a result of phase-out provision for participants who are active in other retirement plans. Person J’s excess AGI is $2,000 ( $66,000 − $64,000 ) . Thus, Person J’s IRA deduction phase-out of $1,200 is computed as follows: $2,000 $10,000 × $6,000 = � b. To determine Compute the amount of contribution for the year 2019 and the amount vested for the given situation.

43rd Edition

ISBN: 9780357109731

Author: Hoffman

Publisher: CENGAGE LEARNING - CONSIGNMENT

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Concept explainers

Tax Deferred Retirement Benefits

It stands for Simplified Employee Pension Individual Retirement Account. This savings plan is for self-employed persons such as independent contractors, freelancers, entrepreneurs, etc. The tax rules of SEP IRA are the same as traditional IRA. Entreprene…

Question

Chapter 19, Problem 40P

To determine

Compute the amount Person J can contribute to a traditional IRA and the amount that can be deducted.

To determine

Compute the amount of contribution for the year 2019 and the amount vested for the given situation.

Expert Solution & Answer

Chapter 19 Solutions

Individual Income Taxes

Ch. 19 - Prob. 1DQ Ch. 19 - Prob. 2DQ Ch. 19 - Prob. 3DQ Ch. 19 - Prob. 4DQ Ch. 19 - Prob. 5DQ Ch. 19 - Prob. 6DQ Ch. 19 - Prob. 7DQ Ch. 19 - Prob. 8DQ Ch. 19 - Prob. 9DQ Ch. 19 - Prob. 10DQ

Ch. 19 - Prob. 11DQ Ch. 19 - Prob. 12DQ Ch. 19 - Prob. 13DQ Ch. 19 - Prob. 14CE Ch. 19 - Prob. 15CE Ch. 19 - Prob. 16CE Ch. 19 - Prob. 17CE Ch. 19 - Zack, a sole proprietor, has earned income of...Ch. 19 - Prob. 19CE Ch. 19 - Prob. 20CE Ch. 19 - Prob. 21CE Ch. 19 - Prob. 22CE Ch. 19 - Prob. 23CE Ch. 19 - Prob. 24CE Ch. 19 - Prob. 25CE Ch. 19 - On April 5, 2017, Gustavo was granted an NQSO for...Ch. 19 - Prob. 27P Ch. 19 - Prob. 28P Ch. 19 - Prob. 29P Ch. 19 - Prob. 30P Ch. 19 - Prob. 31P Ch. 19 - Prob. 32P Ch. 19 - Prob. 33P Ch. 19 - Prob. 34P Ch. 19 - In 2019, Magenta Corporation paid compensation of...Ch. 19 - Prob. 36P Ch. 19 - Prob. 37P Ch. 19 - Prob. 38P Ch. 19 - Prob. 39P Ch. 19 - Prob. 40P Ch. 19 - Prob. 41P Ch. 19 - Prob. 42P Ch. 19 - Prob. 43P Ch. 19 - Prob. 44P Ch. 19 - Carri and Dane, ages 34 and 32, respectively, have...Ch. 19 - Prob. 46P Ch. 19 - Prob. 47P Ch. 19 - Prob. 48P Ch. 19 - Prob. 49P Ch. 19 - Prob. 50P Ch. 19 - Prob. 51P Ch. 19 - Prob. 52P Ch. 19 - Prob. 53P Ch. 19 - Prob. 54P Ch. 19 - Prob. 55P Ch. 19 - Prob. 56P Ch. 19 - Prob. 57P Ch. 19 - Prob. 1RP Ch. 19 - Prob. 2RP Ch. 19 - Prob. 3RP Ch. 19 - Prob. 6RP Ch. 19 - Prob. 8RP Ch. 19 - Prob. 1CPA Ch. 19 - Ryan is 39 years old and works as a real estate...Ch. 19 - Prob. 3CPA Ch. 19 - Prob. 4CPA

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Karen, 28 years old and a single taxpayer, has a salary of $33,000 and rental income of $33,000 for the 2019 calendar tax year. Karen is covered by a pension through her employer. What is the maximum amount that Karen may deduct for contributions to her IRA for 2019? $__________________________ If Karen is a calendar year taxpayer and files her tax return on August 15, what is the last date on which she can make her contribution to the IRA and deduct it for 2019? $__________________________
Virginia and Richard are married taxpayers with adjusted gross income of $28,000 in 2019 If Virginia is able to make a $1,500 contribution to her IRA and Richard makes a $1,500 contribution to his IRA, what is the Saver's Credit Virginia and Richard will be eligible for? $0 $1,500 $2,000 $3,000 $4,000
Freda is a cash basis taxpayer. In 2019, she negotiated her salary for 2020. Her employer offered to pay her 21,000 per month in 2020 for a total of 252,000. Freda countered that she would accept 10,000 each month for the 12 months in 2020 and the remaining 132,000 in January 2021. The employer accepted Fredas terms for 2020 and 2021. a. Did Freda actually or constructively receive 252,000 in 2020? b. What could explain Fredas willingness to spread her salary over a longer period of time? c. In December 2020, after Freda had earned the right to collect the 132,000 in 2020, the employer offered 133,000 to Freda at that time, rather than 132,000 in January 2021. The employer wanted to make the early payment so as to deduct the expense in 2020. Freda rejected the employers offer. Was Freda in constructive receipt of the income in 2020? Explain.

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