Nathan had a car that he acquired for $45,000 5 years ago. It was stolen in the current tax year, and insurance as a result gave Nathan $65,000 in compensation. Nathan, whose job was an industrial chemist, also entered into a restraint of trade with his ex-employer, Chemical Pty Ltd, to not work with any of their competitors for 3 years. Nathan was paid $300,000 for this (assume this did not constitute ordinary income and was also not assessable under s. 15-2). When the agreement lapsed it was not renewed.

Clem is married and is a skilled carpenter. Clem's wife, Wanda, works part time as a substitute grade school teacher. Determine the amount of Clem's expenses that are deductible for AGI this year (if any) under the following independent circumstances: Note: Leave no answer blank. Enter zero if applicable. a. Clem is self-employed, and this year he incurred $830 in expenses for tools and supplies related to his job. Because neither was covered by a qualified health plan, Clem paid health insurance premiums of $5,490 to provide coverage for himself and Wanda (not through an exchange).What is the deductible amount for AGI? b. Clem and Wanda own a garage downtown that they rent to a local business for storage. This year they incurred expenses of $1,270 in utilities and $985 in depreciation.What is the deductible amount for AGI c. Clem paid self-employment tax of $17,600 (the employer portion is $8,800), and Wanda had $3,500 of Social Security taxes withheld from her pay.What is the…

Ken is 63 years old and unmarried. He retired at age 55 when he sold his business, Understock.com. Though Ken is retired, he is still very active. Ken reported the following financial information this year. Assume Ken files as a single taxpayer. a. Ken won $1,540 in an illegal game of poker (the game was played in Utah, where gambling is illegal). b. Ken sold 1,340 shares of stock for $32 a share. He inherited the stock two years ago. His tax basis (or investment) in the stock was $31 per share. c. Ken received $28,400 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years, for $238,560. d. Ken received $13,850 in disability benefits for the year. He purchased the disability insurance policy last year. e. Ken decided to go back to school to learn about European history. He received a $840 cash scholarship to attend. He used $470 to pay for his books and tuition, and he applied the rest toward his new car payment. f. Ken's son, Mike,…

Yukari steals $100,000 from her employer through a series of clever transactions during calendar year 2019. Hoping that she will not be discovered, she does not report this amount on her 2019 income tax return when she files it, although she does report her annual salary of $250,000. Should Yukari have reported the $100,000 in income, she would have owed an additional $33,000 in taxes. Two years later, the scheme is uncovered by the shrewd analysis of a new employee. What is the penalty for the omission of the $100,000 of income? $24,750 $30,000 $75,000 $16,500 I DON'T KNOW YET

The year before last, Victor earned $85,000 from his retail management position, and Maria began working full-time and earned $52,000 as a medical technician. After they took the standard deduction and claimed four exemptions (themselves plus their two children), their federal income tax liability was about $20,000. After being convinced by friends that they were paying too much in taxes, the cou- ple vowed to try to never again pay that much. Therefore, the Hernandezes embarked on a yearlong effort to reduce their income tax liability. This year they tracked all of their possible itemized deductions, and both made contribu- tions to retirement plans at their places of employment. A.) Calculate the Hernandezes’ income tax liability for this year as a joint return (using Table 4-2) given the following information: gross salary income (Victor, $85,000; Maria, $52,000); state income tax refund ($400); interest on checking and savings accounts ($250); holiday bonus from Maria’s employer…

Collin's tax liability for last year was $22,000, and his AGI did not exceed $150,000. Collin requests an automatic extension for filing his current year individual return but does not pay any additional tax with his extension request. By April 15 of the following year, Collin has paid $24,000 of taxes in the form of wage withholding and estimated taxes. Collin files his current year return and pays the balance of the taxes due on July 21 of the following year. Requirement What penalties will Collin owe if his current year tax is $28,000? $26,000? (Complete all input fields. Enter a 0 if there is no penalty.) Penalty Underpaying estimated tax Failure-to-file Failure-to-pay tax if Collin's tax is $28,000 if Collin's tax is $26,000

Andrew has been self-employed as a builder for several years and generated taxable trading profit of £82,000 in the 2020/21 tax year. He has trading losses brought forward of £10,000. His partner Sophie works part time as a mobile dog groomer and has taxable trading profit of £10,560 for the tax year 2020/21. What are the total NICS payable by Andrew and Sophie for the tax year 2020/21? £4,244 £4,180 E4,698 E4,498

January Smith purchased a fancy car, a Ferrari, for $70,000 and claimed CA overtime in Class 10.1. Her opening UCC balance for the current year was $25,000 andshe sold the car for $30,000. She has no other pieces of equipment in that pool.Calculate the total impact on her taxable income.