PRINCIPLES OF TAXATION F/BUS...(LL)
PRINCIPLES OF TAXATION F/BUS...(LL)
23rd Edition
ISBN: 9781260433197
Author: Jones
Publisher: MCG
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Chapter 1, Problem 10IRP

Mr. Imhoff, age 72, has lived in Los Angeles his entire life. His net worth is estimated at $95 million. Mr. Imhoff is considering renouncing his U.S. citizenship, selling his home in Los Angeles, and permanently relocating to the Cayman Islands. The Cayman Islands impose no tax of any kind on their residents.

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Scott and Barbara are married and want to file a joint return. Scott is a U.S. citizen and has a valid Social Security number. Barbara is a resident alien and has an ITIN. They resided in the United States all year with their children. • Scott and Barbara have two children, Maria, age 8, and Luis, age 16. Maria and Luis are U.S. citizens and have valid Social Security numbers. Scott earned $22,000 in wages.. Barbara earned $20,000 in wages. In order to work, the Gymses paid $2,000 to their son Luis to care for Maria after school.. Scott and Barbara provided all of the support for their two children. 5. Payments made to Luis can be claimed on Form 2441 as child and dependent care expenses. a. True b. False
Adam and Lisa are married and want to file a joint return.• Adam is a U.S. citizen and has a valid Social Security number. Lisa is a resident alien and hasan ITIN. They resided in the United States all year with their children.• Adam and Lisa have two children, Maria, age 11, and Luis, age 17. Maria and Luis are U.S.citizens and have valid Social Security numbers.• Adam earned $22,000 in wages.• Lisa earned $20,000 in wages.• In order to work, the Garcias paid $2,000 to their son Luis to care for Maria after school.• Adam and Lisa provided all of the support for their two children. 4. What is the maximum amount Adam and Lisa are eligible to claim for the child tax credit?  5. The Garcias qualify for the child and dependent care credit.
Mr Choi was born and raised in Hong Kong. In recent years, due to family-related reasons, he spends most of his time in Shenzhen. Though Mr Choi has a Hong Kong Identity Card, he seldom visits Hong Kong as most of his friends and relatives are in mainland China. In July 2019, Mr Choi purchased a residential property in Tai Po for $30,000,000 for investment purpose. After a quick renovation, the property was let to Mr Chan for two years, starting from 1 September 2019. The relevant terms of tenancy agreement are extracted below: monthly rent: $30,000, payable at the beginning of each month; rent-free period of a half-month from 1 September 2019; initial premium of $48,000, payable on signing the lease agreement; rates of $6,000 per quarter, payable by Mr Choi to the government; management fees: $2,000 per month, payable by the landlord; and rental deposit: $60,000 payable on signing the lease agreement. In October 2019, the property underwent certain repairs that cost $5,000; these…
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