Advise him of his legal position. (Use IRAC method)

tim is living with his spouse in California when he finds out that his wife is having an affair. Tim packs his bags and leaves the state to move to Indiana, intending on filing separately. Tim and his spouse cohabitated until June. He earned $50,000 during the year, $30,000 of which was in California. She earned $60,000 during the year. How much wage income does Tim have on his California return and from whom? (Remember, the return is being filed separately)   He has $50,000 in state wages from his pay only, since he's no longer in a community property state.   He has $45,000 in state wages, with $15,000 from half of his state-sourced pay and $30,000 from her half of pay.   He has $55,000 in state wages, with $25,000 from half of his total pay and $30,000 from her half of pay.   He has $30,000 in state wages from his state-sourced pay.

King Solomon is a rich farmer in Tetebia, a town in the Asou Municipal Assembly.  He owns over 100,000 hectares of farmlands. However, he fears the worst might happen and wants to do some investments to secure his future and that of his children. He is contemplating some long-term investments he could undertake to secure his future and that if his children. He is now 50 years old and he plans to retire in 10 years from active farm work. He expects to live for another 25 years after he retires –that is, until age 85. He was advised by a friend that an investment in the financial market will help him plan his retirement well. He has no idea about financial markets and how they operate.  You recently graduated from the School of Graduate Studies, University of Professional Studies, Accra and have just reported to work as an investment advisor at the brokerage firm of Cenden Ltd. King Solomon has approached your company for advice. Your boss, after a discussion with King Solomon gathered…

Shemar and Jordan are cousins who were both born on the same day, and both turned 25 today. Their grandfather began putting $2,900 per year into a trust fund for Shemar on his 20th birthday, and he just made a 6th payment into the fund. The grandfather (or his estate's trustee) will make 40 more $2,900 payments until a 46th and final payment is made on Shemar's 65th birthday. The grandfather set things up this way because he wants Shemar to work, not be a "trust fund baby," but he also wants to ensure that Shemar is provided for in his old age. Until now, the grandfather has been disappointed with Jordan, hence has not given him anything. However, they recently reconciled, and the grandfather decided to make an equivalent provision for Jordan. He will make the first payment to a trust for Jordan today, and he has instructed his trustee to make 40 additional equal annual payments until Jordan turns 65, when the 41st and final payment will be made. If both trusts earn an annual return of…

Richard McCarthy (born 2/14/1966; Social Security number 100-10-9090) and Christine McCarthy (born 6/1/1968; Social security number 101-21-3434) have a 19-year-old son Jack, (born 10/2/2001; Social Security number 555-55-1212), who is a full-time student at the University of Key West. The McCarthys also have a 12-year-old daughter Justine, (Social Security number 444-23-1212), who lives with them. The McCarthys can claim a $2,000 child tax credit for Justine and a $500 other dependent credit for Jack. The McCarthys did not receive an EIP in 2020. Richard is the CEO at a paper company. His 2020 Form W-2 is provided. Christine is an optometrist and operates her own practice ("The Eyes of March") in town as a sole proprietor. The shop address is 1030 Morgan Highway, Clarks Summit, PA 18411 and the business code is 621320. Christine keeps her books on the accrual basis and her bookkeeper provided the following information: Gross sales   $270,500 Returns   9,000 Inventory:…

• Aiden and Sophia are married and they have always filed Married Filing Jointly.• Aiden died May 5, 2020 at the age of 58. Sophia, age 56, has not remarried.• Aiden earned $5,000 in wages and Sophia earned $51,000 in wages.• Sophia paid all the cost of keeping up a home and provided all the support for theirtwo children, Mia and Oliver, who lived with them all year.• Mia is 11 years old and Oliver is 15 years old.• Sophia does not have enough deductions to itemize, but she did make a $500 cashcharitable contribution to a qualified charitable organization in tax year 2020.• Aiden, Sophia, Mia, and Oliver are all U.S. citizens with valid Social Securitynumbers. 5. What is most advantageous filing status allowable that Sophia can claim on the taxreturn for tax year 2020?a. Singleb. Head of Householdc. Qualifying Widow(er)d. Married Filing Jointly6. What amount can Sophia deduct as a charitable contribution adjustment?a. $0b. $250c. $300d. $500

Jermaine Watson is a single father with a son, Jamal, who qualifies as a dependent. They live at 5678 SE Stark St., Portland, OR 97233. Jermaine works at first bank of Oregon. Jamaal attends school and at the end of the school day he goes to a dependent care facility next-door to his school, where Jermaine picks him up after work. Jermaine pays $800 per month to the care facility (Portland Day Care, 4567 SE Stark St,. Portland, OR 97233. EIN 90-654-3210).    Jermaine's W-2 from the first bank of Oregon is as follows: Wages (box 1) = $71,510.00 Federal W/H (Box 2) = $3,197.00 Social Security wages (box 3) = $71,510.00 Social Security W/H (box 4) = $4,433.62 Medicare wages (Box 5) = $71,510.00 Medicare W/H (Box 6) = $1,036.90 State Income Taxes (Box 17) = 1,134.90   Jermaine takes one class a semester at Portland State University towards an MBA degree. In 2019, he paid $1300 in tuition, $300 for books and $200 for a meal card.   Jermaine has some investments in a New Zealand public…

Would you sign this return if you were Tom and Teri’s Paid Tax Preparer? Why or why not?   Your clients, Tom (age 48) and Teri (age 45) Trendy, have a son, Tim (age 27). Tim lives in Hawaii, where he studies the effects of various sunscreens on his ability to surf. Last year, Tim was out of money and wanted to move back home and live with Tom and Teri. To prevent this, Tom lent Tim $20,000 with the understanding that he would stay in Hawaii and not come home. Tom had Tim sign a formal note, including a stated interest rate and due date. Tom has a substantial portfolio of stocks and bonds and has generated a significant amount of capital gains in the current year. He concluded that Tim is a deadbeat and the $20,000 note is worthless. Consequently, Tom wants to his son’s bad debt on his and Teri’s current tax return and net it against his other capital gains and losses. Tom is adamant about this!

Christina is a divorced independent marketing consultant age 32, in excellent health, with two young children. She took out a $100,000 whole life insurance policy seven years ago, before the children were born. At that time she was employed in an administrative capacity in a real estate office and had a limited income. She appreciated the value of permanent life insurance but was concerned about her ability to afford whole life premiums over the long-term. Consequently, she chose a dividend option that applied the annual policy dividend to reduce the premium due each year. Christina is now doing much better financially and can easily afford the annual premium. With two children dependent on her she is concerned, however, that the death benefit of her policy should increase with inflation over the long-term. What dividend option could Christina select to meet her current needs? A) The premium reduction dividend option B) The cash dividend option C) The accumulation dividend option D)…

Donald Jefferson and his wife, Maryanne, live in a modest house located in a Los Angeles suburb. Donald has a job at Pittsford Cast Iron that pays him $50,000 annually. In addition, he and Maryanne receive $2,500 interest from bonds that they purchased 10 years ago. To supplement his annual income, Donald bought rental property a few years ago. Every month he collects $3,500 in rent from all of the property he owns. Maryanne manages the rental property, and she is paid $15,000 annually for her work. During 2015, Donald had to have the plumbing fixed in the houses that he rents as well as the house in which he and Maryanne live. The plumbing bill was $1,250 for the rented houses and $550 for the Jeffersons’ personal residence. In 2015, Donald paid $18,000 for mortgage interest and property taxes—$12,650 was for the rental houses, and the remaining $5,350 was for the house occupied by him and his wife. The couple has three children who have graduated from medical school and now are…