Determine gross income and dependency exemptions

Question 1: Under the rules applicable after 2004, determine how many dependency exemptions would be available in each of the following independent situations. Specify whether any such exemptions would come under the qualifying child or the qualifying relative category : a. Richard maintains a household that includes a cousin ...continues

Roth/IRA

What’s the difference between a traditional and Roth IRA? Which do you think is best for you?

Business Taxation - Distinguishing an employee from an independent contractor is very important for tax purposes. Why do you think this is the case?

Distinguishing an employee from an independent contractor is very important for tax purposes. Why do you think this is the case?

TAX ACCOUNTING

See attached file for full problem description.

Tax accounting

See attached file for full problem description. 1. Lori, who is single, purchased a new copier (five-year class property) for $30,000 and new furniture (seven-year class property) for $112,000 on May 20, 2005. Lori expects the taxable income derived from her business (without regard to the amount expensed under § 179) to b ...continues

What is the intent of tax credits?

What is the intent of tax credits? Do you agree with offering them? Why or why not?

Business Taxation Questions

Please answer the following questions: 1. In 2004, Corey had the following transactions: Alimony received $10,000 Salary earned 40,000 Cash dividends received on stock investment ...continues

David and Eliza are married and under 65 years of age. During 2004, they furnish more than half of the support of their 18-year old son, Timothy. Timothy earns $4,000 from a part-time job, most of which he sets aside for future college expenses. During 2004, they also furnish more than half of the support of their 25-year old son, Rick, who is a full-time college student. Rick earns $4,000 from a part-time job, most of which he currently spends for college expenses. David and Eliza also provide more than half of the support of David’s cousin who lives with them for the entire year. How many personal and dependency exemptions should David and Eliza claim?

David and Eliza are married and under 65 years of age. During 2004, they furnish more than half of the support of their 18-year old son, Timothy. Timothy earns $4,000 from a part-time job, most of which he sets aside for future college expenses. During 2004, they also furnish more than half of the support of their 25-year old ...continues

Jesse and Tracy were divorced. Their only marital property was a personal residence with a value of $500,000 and cost of $250,000. Under the terms of the divorce agreement, Tracy would receive the house and Tracy would pay Jesse $100,000 each year for 5 years. If Jesse should die, the remaining payments would be made to his estate. Jesse and Tracy lived apart when the payments were made to Jesse. The divorce agreement did not contain the word "alimony."

Jesse and Tracy were divorced. Their only marital property was a personal residence with a value of $500,000 and cost of $250,000. Under the terms of the divorce agreement, Tracy would receive the house and Tracy would pay Jesse $100,000 each year for 5 years. If Jesse should die, the remaining payments would be made to his e ...continues

Under the terms of a divorce agreement, Taylor is to pay his wife Penny $2,000 per month. The payments are to be reduced to $1,600 per month when their 12 year-old child reaches age 18. During the current year, Taylor paid $24,000 under the agreement. Assuming all of the other conditions for alimony are satisfied, Taylor can deduct from gross income (and Penny must include in gross income) as alimony:

Under the terms of a divorce agreement, Taylor is to pay his wife Penny $2,000 per month. The payments are to be reduced to $1,600 per month when their 12 year-old child reaches age 18. During the current year, Taylor paid $24,000 under the agreement. Assuming all of the other conditions for alimony are satisfied, Taylor can ...continues