All of the following statements are true exceptA brother-in-law must live with the taxpayer the entire year to be claimed as a dependenteven if the other tests are met.If a married person files a separate return, (s)he cannot claim his or her spouse as adependent even if the spouse had no gross income and was not the dependent of anothertaxpayer.A son, age 21, was a full-time student who earned $4,400 from his part-time job. Themoney was used to buy a car. Even though he earned $4,400, his parents can claim him asa dependent if the other dependency tests were met.For each person claimed as a dependent, the Social Security number, adoption taxpayeridentification number, or individual taxpayer identification number must be listed.

The person doesn't have to live with you in order to qualify as your dependent on taxes.So, it is…

Answered: All of the following statements are…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

Doreen is single and has three dependent children aged 12, 14 and 16. The children are full time students and have no income. Doreen is not entitled to SAPTO. Her income for the 2022 year is as follows:Doreen$60,877 Taxable Income$29,999 RFBA (exempt employer)$ 5,200 RESC$22,344 HELP DebtWhat will Doreen’s compulsory HELP Debt Repayment be for the 2022 year?
Kyra, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a "specified services" business. In 2022, the business pays $100,000 in W–2 wages, has $150,000 of qualified property, and generates $350,000 of qualified business income. Kyra has no other items of income, deduction, or loss and will take the standard deduction of $12,950. Assume the QBI amount is net of the self-employment tax deduction. What is Kyra's qualified business income deduction?
Required information [The following information applies to the questions displayed below.] Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $69,800. Meg works part time at the same university. She earns $43,200 a year. The couple does not itemize deductions. Other than salary, the Comers' only other source of income is from the disposition of various capital assets (mostly stocks). (Use the tax rate schedules, Dividends and Capital Gains Tax Rates.) Note: Round your final answers to the nearest whole dollar amount. a. What is the Comers' tax liability for 2023 if they report the following capital gains and losses for the year? Short-term capital gains Short-term capital losses Long-term capital gains Long-term capital losses Total tax liability $ 9,100 (2,100) 15,200 (6,200)
Bruce is single and has adjusted gross income for the current year of $90,000 before any deduction for passive activity losses. He owns a duplex that he uses as rental property and this year his rental loss was $13,000. Bruce has no income from passive activities. Which of the following statements is true? Group of answer choices If Bruce actively participates in managing the rental property he can deduct the $13,000 loss against his other income. Bruce will not be able to deduct the $13,000 loss against his other income unless he materially participates in managing the property. Since Bruce’s income does not exceed $150,000 he can deduct the loss against his other income regardless of his role in managing the property. In no circumstance will Bruce be able to deduct the loss this year since he does not have any passive income.
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Munabhai
Theo, a single taxpayer, actively participates in a rental real estate activity. During the year, his total rental real estate inorme Was $25,000. His only other income for the year was $180,000 in wages. He does not have any adjustments to incomement does he have any expenses allocable to investment income. How much of Theo's income is subject to the net investment A. $0 B. $5,000 C.$25,000 D. $205,000
A married taxpayer files a separate tax return from his wife and does not participate in an employer-sponsored retirement plan at work. The taxpayer has moved out of the couples' home, but lived with his spouse part of the year. The taxpayer cannot deduct any contributions he makes to his traditional IRA if his modified AGI exceeds $_______________?
Karen Thomas is single and has one dependent. She works as a clerk for the district judge and earns $67,000 a year. She does not itemize deductions. Other than salary, the 3. Karen’s only other source of income is from the disposition of shares of stock. a. What is Karen’s tax liability for the current tax year if she reports the following capital gains and losses for the year? Short-term capital gains $12,000 Short-term capital losses ($2,000) Long-term capital gains $16,500 Long-term capital losses ($3,000) b. What is Karen’s tax liability for the current tax year if she reports the following capital gains and losses for the year? Assume her salary is $47,000. Short-term capital gains $12,000 Short-term capital losses ($2,000) Long-term capital gains…
Determine the taxpayer's current-year (1) economic income and (2) gross income for tax purposes from the following events: (LO.1) a. Ja-ron's employment contract as chief executive of a large corporation was terminated, and he was paid $500,000 not to work for a competitor of the corporation for five years. b. Elliot, a six-year-old child, was paid $5,000 for appearing in a television commercial. His parents put the funds in a savings account for the child's education. c. Valery found a suitcase that contained $100,000. She could not determine who the owner was. d. Winn purchased a lottery ticket for $5 and won $750,000. e. Larry spent $1,000 to raise vegetables that he and his family consumed. The cost of the vegetables in a store would have been $2,400. f. Dawn purchased an automobile for $1,500 that was worth $3,500. The seller was in desperate need of cash.
Suzanna earns $4000 in her summertime job; the rest of the year she attends college fulltime. Suzanna may claim an exemption from FIT withholding if: a.she also has a taxable scholarship (used for housing) = $15,000. b.her unearned income (interest) = $1698. c.her aunt claims her as a dependent and she has no unearned income. d.her unearned income (dividends) = $1800.
Charlotte is a partner in, and sales manager for, CD Partners, a domestic business that is not a "specified services" business. During the tax year, she receives guaranteed payments of $177,400 from CD Partners for her services to the partnership as its sales manager. In addition, her distributive share of CD Partners' ordinary income (its only item of income or loss) was $106,440. What is Charlotte's qualified business income? $fill in the blank 1 ______?

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