Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 13, Problem 26P
To determine
Write a letter to PC explaining the alternative expenditures. Also prepare a tax memo regarding this.
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Charles has AGI of $45,000 and has made the following payments related to (1) land he inherited from his deceased aunt
and (2) a personal vacation taken last year.
State inheritance tax on the land
County real estate tax on the land
School district tax on the land
$ 1,220
2,330
954
City special assessment on the land (new curbs and
gutters)
State tax on airline tickets (paid on vacation)
Local hotel tax (paid during vacation)
957
216
293
Calculate the amount of taxes Charles may include in his itemized deductions for the year under the following
circumstances: (Leave no answer blank. Enter zero if applicable.)
a. Suppose that Charles holds the land for appreciation.
X Answer is complete but not entirely correct.
Deductible taxes from
$
AGI
During the current year, Hom donates a sculpture that cost $1,000 to a museum for exhibition. The sculpture's fair market value was $1,700 on the date of the donation, and Hom's adjusted gross income is $40,000.
Assume Hom held the sculpture for 4 months and the $700 ($1,700 − $1,000) of appreciation is a short-term capital gain. Calculate the amount of his itemized deduction for the contribution.
Assume Hom held the sculpture for 2 years and the $700 appreciation is a long-term capital gain. Calculate the amount of his itemized deduction for the contribution.
!
Required information
[The following information applies to the questions displayed below.]
Charles has AGI of $47,000 and has made the following payments
related to (1) land he inherited from his deceased aunt and (2) a
personal vacation taken last year.
$ 1,480
2,110
State inheritance tax on the land
County real estate tax on the land
School district tax on the land
831
City special assessment on the land (new curbs and
gutters)
State tax on airline tickets (paid on vacation)
Local hotel tax (paid during vacation)
786
306
270
Calculate the amount of taxes Charles may include in his itemized
deductions for the year under the following circumstances: (Leave no
answer blank. Enter zero if applicable.)
b. Suppose that Charles holds the land for rent.
Deductible taxes from AGI
Chapter 13 Solutions
Individual Income Taxes
Ch. 13 - Prob. 1DQCh. 13 - LO.2 Clint, a sell-employed engineering...Ch. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - LO.4 Mark and Lisa are approaching an exciting...Ch. 13 - Prob. 7DQCh. 13 - Prob. 8DQCh. 13 - Prob. 9DQCh. 13 - Describe the two additional Medicare taxes that...
Ch. 13 - Prob. 11CECh. 13 - Prob. 12CECh. 13 - LO.3 During 2019, Lincoln Company hires seven...Ch. 13 - Prob. 14CECh. 13 - Samuel and Annamaria are married, file a joint...Ch. 13 - Prob. 16CECh. 13 - Prob. 17CECh. 13 - LO.4, 8 Ava and her husband, Leo, file a joint...Ch. 13 - Prob. 19CECh. 13 - Prob. 20CECh. 13 - LO.5 In 2019, Bianca earned a salary of 164,000...Ch. 13 - Prob. 22CECh. 13 - LO.7 Determine the additional Medicare taxes for...Ch. 13 - Prob. 24PCh. 13 - LO.2 Oak Corporation has the following general...Ch. 13 - Prob. 26PCh. 13 - Prob. 27PCh. 13 - Prob. 28PCh. 13 - Prob. 29PCh. 13 - Prob. 30PCh. 13 - LO.4 Jason, a single parent, lives in an apartment...Ch. 13 - LO.4, 8 Joyce, a widow, lives in an apartment with...Ch. 13 - Prob. 33PCh. 13 - Prob. 34PCh. 13 - Prob. 35PCh. 13 - Prob. 36PCh. 13 - Prob. 37PCh. 13 - Prob. 38PCh. 13 - LO.5 During 2019, Greg Cruz (1401 Orangedale Road,...Ch. 13 - Prob. 40PCh. 13 - Jane, who is expecting to finish college in May...Ch. 13 - Julie, being self-employed, is required to make...Ch. 13 - Prob. 43PCh. 13 - Beth R. Jordan lives at 2322 Skyview Road, Mesa,...Ch. 13 - Prob. 45CPCh. 13 - Ashby and Curtis, married professionals, have a...Ch. 13 - Prob. 2RPCh. 13 - Prob. 4RPCh. 13 - Prob. 1CPACh. 13 - Prob. 2CPACh. 13 - Prob. 3CPACh. 13 - Prob. 4CPACh. 13 - Prob. 5CPA
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