Questions from Individual Taxation

Q: This year Tim is age 45 and is considering enrolling in an

This year Tim is age 45 and is considering enrolling in an insurance program that provides for long-term care insurance. He is curious about whether the insurance premiums are deductible as a medical...

Q: Doctor Bones prescribed physical therapy in a pool to treat Jack’s broken

Doctor Bones prescribed physical therapy in a pool to treat Jack’s broken back. In response to this advice (and for no other reason), Jack built a swimming pool in his backyard and strictly limited u...

Q: Charles has AGI of $50,000 and has made the

Charles has AGI of $50,000 and has made the following payments related to (1) land he inherited from his deceased aunt and (2) a personal vacation taken last year. Calculate the amount of taxes Charl...

Q: Dan has AGI of $50,000 and paid the following

Dan has AGI of $50,000 and paid the following taxes during this tax year. Calculate the amount of taxes Dan may include in his itemized deductions for the year. State income tax withholding ………………...

Q: Tim is a single, cash-method taxpayer with one personal

Tim is a single, cash-method taxpayer with one personal exemption and an AGI of $50,000. In April of this year Tim paid $1,020 with his state income tax return for the previous year. During the year...

Q: This year Randy paid $28,000 of interest (Randy

This year Randy paid $28,000 of interest (Randy borrowed $450,000 to buy his residence, and it is currently worth $500,000). Randy also paid $2,500 of interest on his car loan and $4,200 of margin in...

Q: This year, Major Healy paid $40,000 of interest

This year, Major Healy paid $40,000 of interest on a mortgage on his home (Major Healy borrowed $800,000 to buy the residence; $900,000 original purchase price and value at purchase; $1,000,000 curren...

Q: Ray made the following contributions this year. / Determine

Ray made the following contributions this year. Determine the maximum amount of charitable deduction for each of these contributions ignoring the AGI ceiling on charitable contributions and assuming...

Q: Calvin reviewed his canceled checks and receipts this year for charitable contributions

Calvin reviewed his canceled checks and receipts this year for charitable contributions. He has owned the IBM stock and painting since 2005. Calculate Calvin’s charitable contributi...

Q: In addition to cash contributions to charity, Dean decided to donate

In addition to cash contributions to charity, Dean decided to donate shares of stock and a portrait painted during the earlier part of the last century. Dean purchased the stock and portrait many yea...