Problem 11-63 (LO. 10, 11) In 2023, Kathleen Tweardy incurs $30,000 of interest expense related to her investments. Her investment income includes $7,500 of interest, $6,000 of qualified dividends, and a $12,000 net capital gain on the sale of securities. Kathleen asks you to compute the amount of her deduction for investment interest, taking into consideration any options she might have. a. If Kathleen elects not to treat the capital gain and qualified dividends as investment income for purposes of the investment interest expense limitation, her deduction will be $ b. If Kathleen elects to treat the capital gain and qualified dividends as investment income for purposes of the investment interest expense limitation, her deduction will be $ c. In addition, Kathleen wants your suggestions as to any tax planning alternatives that are available. Complete the letter to her that contains your advice. February 28, 2024 Ms. Kathleen Tweardy 11934 Briarpatch Drive Midlothian, VA 23113 Dear Ms. Tweardy: SWFT, LLP 5191 Natorp Boulevard Mason, OH 45040

Complete Problem above before completing below Problem Richard and Christine McCarthy 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. Years ago, the McCarthys shifted a significant amount of investments into Jack’s name. In 2020, Jack received Forms 1099-INT and 1099-DIV that reported the following: Tandy Corporation Bonds interest $11,300 Tandy Corporation ordinary dividends 3,400 The dividends are not qualified dividends. In addition, Jack works part-time as a waiter in an upscale seafood restaurant in Miami, FL. His 2020 Form W-2 reported: Wages $12,800 Federal withholding 1,080 In spite of his fairly large income, the McCarthys provide over 50 percent of his support and claim Jack as a dependent in 2020. Jack’s mailing address is 100 Duval Street, Apt. #B12, Key West, FL 33040. Use the parent’s information from Problem 1A, Form 1040, Schedule B, and…

Item 5     Xavier bought furniture and fixtures (7-year property) on September 15, 2023, for $1,185,000. He elects to expense as much as possible under Section 179 but does not elect the 100% bonus. Xavier's earned income for the year is $1,200,000. What is the maximum deduction Xavier can take in 2023 for the equipment?

Answer the following a. If Kathleen receives a $17,000 distribution from her traditional 401(k) account, how much will she be able to keep after paying taxes and penalties, if any, on the distribution? b. If Kathleen receives a $17,000 distribution from her Roth 401(k) account, how much will she be able to keep after paying taxes and penalties, if any, on the distribution? c. If Kathleen retires from MH and then receives a $17,000 distribution from her traditional 401(k), how much will she be able to keep after paying taxes and penalties, if any, on the distribution?

Rahul

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Problem 3-28 (LO. 1, 8) The following information applies to Emily for 2021. Her filing status is single. Salary Interest income from bonds issued by Xerox Alimony payments received (divorce occurred in 2014) Contribution to traditional IRA Gift from parents Short-term capital gain from stock investment Amount lost in football office pool (gambling loss) Age Emily has no gambling winnings this year. Click here to access the standard deduction table to use. Indicate whether the following items are taxable or nontaxable to Emily. Salary Gift from parents Alimony payments received Short-term capital gain from stock investment Interest income from bonds issued by Xerox Identify whether the items are deductible (fully or partially) by Emily. Amount lost in football office pool Contribution to a traditional IRA Emily's taxable income in 2021 is $ $85,000 1,100 6,000 6,000 25,000 2,500 500 40