Questions from Individual Taxation

Q: In 2016, Carson is claimed as a dependent on his parent’s

In 2016, Carson is claimed as a dependent on his parent’s tax return. His parents’ ordinary income marginal tax rate is 28%. Carson’s parents provided most of his support. What is Carson’s tax liabili...

Q: Sylvester files as a single taxpayer during 2016 and claims one personal

Sylvester files as a single taxpayer during 2016 and claims one personal exemption. He itemizes deductions for regular tax purposes. He paid charitable contributions of $7,000, real estate taxes of $1...

Q: In 2016, Nadia has $100,000 of regular taxable

In 2016, Nadia has $100,000 of regular taxable income. She itemizes her deductions as follows: real property taxes of $1,500, state income taxes of $2,000, and mortgage interest expense of $10,000 (no...

Q: In 2016, Sven is single and has $120,000

In 2016, Sven is single and has $120,000 of regular taxable income. He itemizes his deductions as follows: real property tax of $2,000, state income tax of $4,000, mortgage interest expense of $15,000...

Q: Olga is married and files a joint tax return with her husband

Olga is married and files a joint tax return with her husband. What amount of AMT exemption may she deduct under the following alternative circumstances? a. Her AMTI is $90,000. b. Her AMTI is $180,0...

Q: Does the kiddie tax eliminate the tax benefits gained by a family

Does the kiddie tax eliminate the tax benefits gained by a family when parents transfer income-producing assets to children? Explain.

Q: Corbett’s AMTI is $130,000. What is his AMT

Corbett’s AMTI is $130,000. What is his AMT exemption under the following alternative circumstances? a. He is married and files a joint return. b. He is married and files a separate return. c. His f...

Q: In 2016, Juanita is married and files a joint tax return

In 2016, Juanita is married and files a joint tax return with her husband. What is her tentative minimum tax in each of the following alternative circumstances? a. Her AMT base is $100,000, all ordina...

Q: Steve’s tentative minimum tax (TMT) for 2016 is $15

Steve’s tentative minimum tax (TMT) for 2016 is $15,000. What is his AMT if a. His regular tax is $10,000? b. His regular tax is $20,000?

Q: Rex loves to work with his hands and is very good at

Rex loves to work with his hands and is very good at making small figurines. Rex opened Bronze Age Miniatures (BAM) for business several years ago as a sole proprietorship. BAM produces miniature char...