Theme: Adjusted Gross Income as determined by the IRS of USA. Examine the case below and do the following: 1.Indicates the income items that are part of the gross income. 2.Indicates the salary exclusions. 3.Identify the deductions to which the taxpayer is entitled to calculate the adjusted gross income. 4.Calculate adjusted gross income. 5.Indicates the status that the taxpayer must file. 6.Fill out Form 1040. Case 2 Carlos Martínez was born on January 9, 1967, is a teacher and is married. He had a salary of $50,000 and a tax withheld of $5,000. Carlos pays an individual retirement account (IRA) for himself of $7,000. His wife, Carmen Flores, was born on April 22, 1971, she works from home selling clothes, from which she had an income of $12,000. The couple have no children and have a joint bank account from which she earned $2,500 in interest from the bank.

Alicia and Marie own a vacation home at the beach. During the year, they rented the house for 42 days (six weeks) at $890 per week and used it for personal use for 58 days. The total costs of maintaining the home are as follows: Hortgage interest Property taxes Insurance utilities Repairs Depreciation Required: a. What is the proper tax treatment of this information on their tax return using the Tax Court method? Note: Use 365 days in a year. Round your intermediate computations to 5 decimal places and final answers to nearest whole dollar value. Income Mortgage interest Property taxes Insurance Uits Repairs Show Transcribed Text Repairs Depreciation Net income $ Tex court method IRS method Schedule E $4,200 700 1,200 3,200 1,900 5,500 Direct allocation method i Appropriation method Oral mathe Schedule A b. Are there options available for how to allocate the expenses between personal and rental use? Note: You may select more than one answer. Single click the box with the question mark…

Use the following information to complete Johnelle and Latoya Henry's 2018 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps. You may need the following forms to complete the project: Form 1040 and Schedule A. The forms, schedules, and instructions can be found at the IRS Web site (www.irs.gov). The instructions can be helpful in completing the forms. Facts: Page C-4 Johnelle Henry is employed as a human resources manager for Toys Unlimited, Inc., and Latoya is a financial planner for her mother's company, Long-term Investments, Inc., a full-service wealth-planning firm. They provide the following information: Page C-3 They both want to contribute to the presidential election campaign. They live at 9876 Old Waverly, Charleston, South Carolina. Johnelle's birthday is 7/17/1965 and his Social Security number is 555-12-6789. Latoya's birthday is 9/11/1967 and her Social Security number is 987-65-4321. Johnelle or Latoya do not have any…

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