Using the taxable income formula in chapter 4 or the irs website figure out Alicia and David's taxable income. David and Alicia are married without any dependents. They own a home and pay $20,000 in property taxes, $5,000 mortgage interest, $2,000 in medical expenses, and donated $2,000 to charity. Below is their additional tax information: • David's W2 $80,000 Alicia's W2 $160,000 . Dividend Income $5,000 Capital Gains of $8,000 O $234,000 $224,000 O $225,300 O $226,000 $236,000

Sheila, a single taxpayer, is a retired computer executive with a taxable income of 100,000 in the current year. She receives 30,000 per year in tax-exempt municipal bond interest. Adam and Tanya are married and have no children. Adam and Tanyas 100,000 taxable income is comprised solely of wages they earn from their jobs. Calculate and compare the amount of tax Sheila pays with Adam and Tanyas tax. How well does the ability-to-pay concept work in this situation?

Jason and Mary are married taxpayers in 2019. They are both under age 65 and in good health. For 2019 they have a total of $41,000 in wages and $700 in interest in come. Jason and Mary's deductions for adjusted gross income amount to $5,000 and their itemized deductions equal $18,700. They have two children, ages 32 and 28, that are married and provide support for themselves. What is the amount of Jason and Mary's adjusted gross income?$____________ What is the amount of their itemized deductions or standard deduction? $____________ What is their taxable income? $____________

Brad and Angie are married and file a joint return. For year 14, they had income from wages in the amount of 100,000 and had the following capital transactions to report on their income tax return: What is the amount of capital loss carryover to year 15? a. (155,000) b. (152,000) c. (132,000) d. (125,000)

Otto and Monica are married taxpayers who file a joint tax return. For the current tax year, they have AGI of $80,300. They have excess depreciation on real estate of $67,500, which must be added back to AGI to arrive at AMTI. The amount of their mortgage interest expense for the year was $25,000, and they made charitable contributions of $7,500. If Otto and Monica's taxable income for the current year is $47,800 determine the amount of their AMTI. _______________________________________________________________________

Stewie, a single taxpayer, operates an activity as a hobby. Brian, a different taxpayer, operates a similar activity as a bona fide business. Stewie's gross income from his activity is $5,000 and his expenses are $6,000. Brian's gross income and expenses are coincidentally the same as Stewie. Neither Stewie nor Brian itemize, but both have other forms of taxable income. What is the impact on taxable income for Stewie and Brian from these activities? Stewie will report $0 income and Brian will report a $1,000 loss. Stewie will report $5,000 income and $0 deduction and Brian will report a $1,000 loss. Stewie and Brian will report $0 taxable income. Stewie and Brian will report a $1,000 loss. Stewie will report a $1,000 loss and Brian will report $5,000 income.