Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received a $20,000 bill from her accountant for consulting services related to her small business. Reese can pay the $20,000 bill anytime before January 30 of next year without penalty. Assume Reese's marginal tax rate is 32 percent this year and 35 percent next year, and that she can earn an

Carson Holiday has a federal tax levy of $4,119.90 against him. If Holiday is single with three personal exemptions and had a take-home pay of $1,020.00 this week, how much would his employer take from his pay to satisfy part of the tax levy?

In April of this year Rachel received a $1,780 refund of state income taxes that she paid last year. Last year Rachel claimed itemized deductions of $12,400. Rachel's itemized deductions included state income taxes paid of $850. How much of the refund, if any, must Rachel include in the gross income if the standard deduction last year was $12,000?

Jayana, a calendar-year taxpayer, uses the cash method of accounting for a sole proprietorship. In late December Jayana received a $37,000 bill from her accountant for consulting services related to her small business. Jayana can pay the $37,000 bill anytime before January 30 of next year without penalty. Assume her marginal tax rate is 37 percent this year and next year, and that she can earn an after-tax rate of return of 11 percent on her investments. a. What is the after-tax cost if Jayana pays the $37,000 bill in December? After-tax cost b. What is the after-tax cost if Jayana pays the $37,000 bill in January? Use Exhibit 3.1. (Round your answer to the nearest whole dollar amount.) After-tax cost c. Based on requirements a and b, should Jayana pay the $37,000 bill in December or January? O December O January

Troy, a cash basis taxpayer, is employed by Eagle Corporation, also a cash basis taxpayer. Troy receives a salary of $60,000 per year. He also receives a bonus equal to 10% of all collections from clients he serviced during the year (which he receives in January of the following year). Determine the tax consequences of the following events to the corporation and to Troy: a.  On December 31, 2023, Troy was visiting a customer. The customer gave Troy a $10,000 check payable to the corporation for appraisal services Troy performed during 2023. Troy did not deliver the check to the corporation until January 2024. The corporation recognizes the income in:   Troy recognizes the bonus related to this collection in:     Question Content Area b.  Assume Eagle Corporation is an accrual basis taxpayer. On December 31, 2023, Troy was visiting a customer. The customer gave Troy a $10,000 check payable to the corporation for appraisal services Troy performed during 2023. Troy deposited the…

Jerry, a cash basis taxpayer, rents office space for his business. He pays $12,000 on September 1 of the current year for the next twelve months of rent.  Jerry may deduct the full $12,000 in the current year on his tax return. True or False

Arabella Cunningham is 24 years old and single, lives in an apartment, and has no dependents. Last year she earned $55,000 as a sales representative forPlanning Associates; $3,910 of her wages was withheld for federal income taxes. In addition, she had interest income of $142. She takes the standard deduction. Calculate her taxable income, tax liability, and tax refund or taxowed for 2018.

This year Lloyd, a single taxpayer, estimates that his tax liability will be $11,350. Last year, his total liability was $15,900. He estimates that his tax withholding from his employer will be $8,655. - Assuming Lloyd does not make any additional payments, what is the amount of his underpayment penalty? Assume the federal short term rate is 5%.

Martin is a single taxpayer living in Seattle, Washington, with adjusted gross income for the 2020 tax year of $59,000. Martin 's employer withheld $3,100 in state income tax from his salary. In April of 2020, he paid $250 in additional state taxes for his prior year's return. The real estate taxes on his home are $1,750 for 2020 and his personal property tax based on the value of his automobile is $85. Also, he paid $315 for state gasoline taxes for the year. The IRS estimate of general sales tax for Martin is $2,460 for 2020. ​ How much should Martin deduct on Schedule A of Form 1040 of his 2020 tax return for taxes paid?

Patricia buys a house (her principal residence) during the current year for $2,000,000, paying $500,000 down and borrowing the other $1,500,000 at 5% interest. If her interest expense for the year is $75,000, how much will her maximum deduction for interest expenses be? This is a federal taxation question.