a. What is the Jacksons' taxable income, and what is their tax liability or (refund)?

This year, Leron and Sheena sold their home for $750,000 after all selling costs. Under the following scenarios, how much taxable gain does the home sale generate for Leron and Sheena? Assume that the couple is married filing jointly. Leron and Sheena bought the home one year ago for $600,000 and lived in the home until it sold.  What's the taxable gain?

Determine the taxable gift in each of the following unrelated scenarios:Abram is single and gives $35,000 to each one of his eight grandchildren.Jacob is married and gives $35,000 to each one of his eight grandchildren. He and his wife gift split.In January, Curt sells YTM stock (FMV = $30,000) to Martina for $20,000.David sells a $500,000 real estate property to Joe for $100,000.In the ordinary course of business, Joe sells a diamond ring valued at $30,000 for $15,000 to a customer named Donna.Determine the items exempt from gift tax that were paid by Yancey:College expenses for his son paid directly to the institutionTuition = $20,000Room and Board = $10,000Transfer to Throw Them All Out political party = $3,000College expenses for his daughter paid directly to herTuition = $35,000Room and Board = $10,000Medical expenses for his son = $20,000Medical expenses for his son’s friend Sergio = $5,000Determine the annual exclusion in each of the following unrelated…

Several years ago, Georgia transferred $500,000 of real estate into an irrevocable trust for her son, Lee. The trustee was directed to retain income until Lee's 21st birthday and then pay him the corpus of the trust. Georgia retained the power to require the trustee to pay income to Lee at any time and the right to the assets if Lee predeceased her. What amount of the trust, if any, will be included in Georgia's estate if she dies this year when the value of the real estate in trust is $700,000? Amount to be included in Georgia's estate

Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents (Damarcus, Jasmine, Michael, and Candice). The Jacksons file a joint tax return. The couple received salary income of $95,000 and qualified business income of $20,000 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $250,000 and they sold it for $300,000. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $18,500 of itemized deductions, and they had $4,000 withheld from their paychecks for federal taxes. They are also allowed to claim a child tax credit for each of their children. However, because Candice was 18 years of age at year end, the Jacksons may claim a child tax credit for other qualifying dependents for Candice. (Use the tax rate schedules.) Comprehensive Problem 4-57 Part-a (Algo) a. What is the Jacksons' taxable income, and…

Marc and Mikkel are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc contributed $2,500 to a traditional individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,500 (under a divorce decree effective June 1, 2006). Marc and Mikkel have a 10-year-old adopted son, Mason, who lived with them throughout the entire year. Thus, Marc and Mikkel are allowed to claim a $2,000 child tax credit for Mason. Marc and Mikkel paid $6,000 of expenditures that qualify as itemized deductions, and they had a total of $2,500 in federal income taxes withheld from their paychecks during the year. (Use the tax rate schedules for 2022) Complete Schedule 1 of Form 1040 for Marc and Mikkel.

Harold and Maude were married and lived in a common-law state. Maude died in 2018 with a taxable estate of $26.00 million and left it all to Harold. Maude's executor filed a timely estate tax return claiming the marital deduction for the property left to Harold including a valid portability election. Harold died this year, leaving the entire $26.00 million to their three children. (Refer to Exhibit 25- 1 and Exhibit 25-2.) Calculate how much estate tax is due from Harold's estate under the following two alternatives. a. Assume that neither Harold nor Maude had made any taxable gifts prior to this year. b. Assume that Harold and Maude each made a $1 million taxable gift in 2011 and offset the gift tax at that time with the applicable credit. Estate tax if no taxable gifts were made Estate tax if taxable gifts were made $ 5,928,000 $ 0

John, age 52, and Lucy, age 49, are married filing jointly.  Both are self employed and report their business income on  Schedule C.  John’s Schedule C showed $12,500 in profits during 2022 while Lucy had a loss of $4,200 on her Schedule C.  Lucy also earned $5,600 from a seasonal part-time job at Target.  Together, they own a residential rental property that earned $45,000 in passive income for the year.  What is the maximum allowable IRA contribution for each in 2022?

Lance has two adult children from a previous marriage. He has gifted them money for the past three years from his separate bank account and his wife has consented to split the gifts each year. Lance made gifts to his children as follows: 2016: Gifts of $60,000 to each child 2017: Gifts of $40,000 to each child 2018: Gifts of $50,000 to each child Explain the gift tax filing requirements. Will Lance have to file a gift tax return? What about his wife?

This year Carla received corporate stock worth $35,000 as a gift from her grandfather. Her grandfather originally had purchased the stock in 2012 at a cost of $20,000. No gift taxes were paid on the transfer. Three months after receiving the stock. Carla sold it for $32,000. What are the amount and character of gain or loss recognized by Carla on this transaction?