Mark and Mary have been married for 12 years and have no children. The couple divorced several years ago. As part of the divorce agreement, Mary transferred stock (FMV = $50,000, AB = $15,000) to Mark. What is the amount of Mark’s gross income from receipt of the stock in 2021? Matt and Melanie have been married for 12 years and have no children. They are divorcing on January 1, 2021. Matt comes to you for tax advice. As part of their divorce, Melanie will pay Matt $2,000/month alimony until Matt finishes graduate school and can secure full-time employment (approx. 25 months). What amount, if any, does Matt included in gross income? Assume the divorce agreement is finalized January 1, 2021, and Matt receives 12 payments ($24,000 total) in 2021.

Ted and Alice were divorced in January 2018. The provisions of the divorce decree and Alices's obligations follow: 1. Transfer the title in their resort condo to Ted. At the time of the transfer, the condo had a basis to Alice of $95,000, a fair market value of $115,000; it was subject to a mortgage of $85,000. 2. Alice is to make the mortgage paynents for 17 years regardless of how long Ted lives. Alice paid $12,000 in 2020. 3. Alice is to pay Ted $1,000 per month, beginning in 2018, for 10 years or until Ted dies. Of this amount, $500 is designated as child support. Alice made five payments of $900 each in 2021 (January - May). What is the amount of alimony from his settlement that is includible in Ted's gross income for 2021?

Ethel and Cletus are married but have been not speaking to each other for 6 months. Cletus moved out of their house in November of 2022. Although Ethel's CPA has advised her to file as married filing jointly on her 2022 tax return, she refuses to communicate with Cletus to accomplish the filing. So, she files her return as married filing separate and includes the following information on her tax return. Her CPA sent a copy to Cletus to help him in filing his return. Cletus has $50,000 in wages and only $3,500 in itemized deductions. What is Cletus's taxable income for 2022? Ethel's Tax Information: Gross Income For AGI deductions: AGI From AGI deductions: Itemized deductions Taxable income Ethel): $80,000 30.000 $50,000 7.000 $43.000 a. $24,100 b. $30,600 c. $37,050 d. $46,500

Glen (53) is unmarried. Glen's wife, Priscilla, died on June 26 , 2018. For 2018, he filed a joint return. Glen's daughter, Mary Beth (19), lived with him for two months in 2019. Glen does not provide more than 50% of Mary Beth's support. Mary Beth is not a student. Glen's 2019 income consisted of $37,000 in wages and $2,500 in dividends. Question 28 of 50. What is Glen's correct and most favorable 2019 filing status? O single. O Married filing jointly. O Married filing separately. O Head of household. O Qualifying widow(er). O Mark for follow up Question 29 of 50. Does Glen meet the qualifications for claiming the Child Tax Credit/Additional Child Tax Credit or the Other Dependent Credit on his 2019 return? Choose the best answer. O Glen is eligible to claim the Child Tax Credit/Additional Child Tax Credit. O Glen is eligible to claim the Other Dependent Credit. O Glen is not eligible to claim the Child Tax Credit/Additional Child Tax Credit or the Other Dependent Credit. O Mark for…

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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?

Harry is divorced from Kate. Pursuant to the divorce decree, they alternate years claiming their son, Frank (8), as a dependent. In 2020, Kate, the custodial parent, claimed Frank as a dependent. In March of 2021, Kate received an Economic Impact Payment (aka the third stimulus payment) of $2,800 ($1,400 for herself and $1,400 for Frank), and Harry received a stimulus payment of $1,400 for himself only. For 2021, Kate released Frank's dependency exemption to Harry. Harry filed his 2021 return using the Single filing status and reported adjusted gross income of $62,000. Which of the following is true regarding Harry's 2021 Recovery Rebate Credit?  a.Harry may claim a $1,400 credit for Frank.  b.Harry may claim a phased-down credit of $950 for Frank.  c.Harry will be entitled to claim one-half of Frank's stimulus. He will receive a credit of $700 on his 2021 return, and Kate will have a corresponding $700 in additional taxes due on her return.  d.Harry is not eligible for the Recovery…

Just prior to a major medical procedure, Cody gives his son, Liam, stock in Robin Corporation (fair market value of $1,624,200 and basis of $2,273,880). At the time of the gift, Cody held some unused capital losses. The surgery is unsuccessful, and after Cody's death, Liam sells the stock for $2,501,268. Question Content Area a. What is the income tax result for Liam? $fill in the blank c46f48f55fc1018_1 Question Content Area b. What if the gift had not been made and the stock passed to Liam as a bequest from Cody?

This year Diane intends to file a married - joint return. Diane received $188,300 of salary and paid $8,150 of interest on loans used to pay qualified tuition costs for her dependent daughter, Deb. This year Diane has also paid moving expenses of $9,000 and $28,700 of alimony to her ex-spouse, Jack, who she divorced in 2013. Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. a. What is Diane's adjusted gross income?

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