What is Richard's adjusted gross income for 2004?
Richard, age 19, is a full-time student at State College and a candidate for a bachelor's degree. During 2004, he received the following payments: Wages: $2,000 State scholarship for ten months (tuition and books): $4000 Loan from college financial ...continues
Judas is an executive for the Oak Furniture Manufacturing Company. Judas purchased furniture from the company for $1,500, the price Oak ordinarily charges a wholesaler. The retail price of the furniture was $3,000. The company also paid for Judas's parking space in a garage near the office. The parking fee was $2,000 for the ...continues
Chantell, an attorney, had the following income and expenses in her business: Commissions income $250,000 Expenses: Referral fees paid to non-attorneys for referrals (illegal under state law and subject to criminal penalties) $30,000 Referral fees paid to other attorneys for referral (not illegal under state law): ...continues
Maxine pursued a hobby of knitting socks in her spare time. During the year she sold the socks for $ 2,250. She incurred expenses as follows: Supplies $2,200 Interest on loan to get business started 350 Advertising 475 Assuming that the activity is deemed a hobby and that she cannot itemize this year, how shou ...continues
What amount of loss may Janine use for the current year?
Janine (not in the loan business) loaned Carly $30,000 two years ago. During the current year, Carly declared bankruptcy. The bankruptcy trustee informed the unsecured creditors that no assets are available for distribution from the bankruptcy estate. For the current year, Janine also had $18,000 of short-term capital gains. ...continues
Determine Velma’s AGI for 2004
Velma, a married taxpayer filing a joint return, had the following items for 2004: · Salary of $75,000. · Loss of $25,000 on the sale of stock acquired two years ago from Mac, an investor. · Gain of $20,000 on the sale of §1244 stock acquired three years ago. · Stock acquired on January 1 ...continues
What is Brett's allowable casualty loss deduction?
Brett had adjusted gross income of $60,000. During the year, his personal use summer home was partially destroyed by a fire. Pertinent data with respect to the home follows: Cost basis $ 250,000 Value before casualty ...continues
During the year, Rose took a trip from Chicago to Madrid. She was away from home for 20 days. She spent five days vacationing and fifteen days on business (including the three travel days). Her expenses are as follows: Air fare $2,000 L ...continues
Please answer the following questions: 21. Which, if any, of the following expenses is a miscellaneous itemized deduction subject to the 2 percent floor? a. Union dues. b. Tax preparation fee. c. Appraisal fees d. Safe deposit box fee. e. All of the above. 24. Which of the following qua ...continues
Reba, who holds a bachelor of education degree, is a middle school teacher in Pueblo, Colorado. The school board recently changed its minimum education requirement by prescribing five years of college training. Existing teachers, such as Reba, are allowed 5 years in which to acquire the additional year of education. Pursuant ...continues
