Principles Of Taxation For Business And Investment Planning 2020 Edition
23rd Edition
ISBN: 9781259969546
Author: Sally Jones, Shelley C. Rhoades-Catanach, Sandra R Callaghan
Publisher: McGraw-Hill Education
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Chapter 14, Problem 3IRP
To determine
Identify the tax issues and state the issues in the form of a question.
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Ursula is employed by USA Corporation. USA Corporation provides medical and health, disability, and group term life insurance coverage for its employees. Premiums attributable to Ursula were as follows:
(Click the icon to view the premiums attributable to Ursula.)
During the year, Ursula suffered a heart attack and subsequently died. Before her death, Ursula collected $14,000 as a reimbursement for medical expenses and $5,000 of disability income. Upon her death, Ursula's husband collected the $40,000 face value of the life
insurance policy.
Read the requirements.
Requirement a. What amount can USA Corporation deduct for premiums attributable to Ursula? (Enter a "0" if none of the premiums are deductible.)
The premiums attributable to Ursula that USA Corporation can deduct is
Requirement b. How much must Ursula include in income relative to the premiums paid? (Enter a "0" if none of the premiums paid should be included in income.)
0
$4,100
Ursula must report income of
She must report…
Ursula is employed by USA Corporation. USA Corporation provides medical and health, disability, and group term life insurance coverage for its employees. Premiums attributable to Ursula were as follows:
(Click the icon to view the premiums attributable to Ursula.)
During the year, Ursula suffered a heart attack and subsequently died. Before her death, Ursula collected $14,000 as a reimbursement for medical expenses and $5,000 of disability income. Upon her death, Ursula's husband collected the $40,000 face value of the life
insurance policy.
Read the requirements.
C
Requirement a. What amount can USA Corporation deduct for premiums attributable to Ursula? (Enter a "0" if none of the premiums are deductible.)
The premiums attributable to Ursula that USA Corporation can deduct is
Requirement b. How much must Ursula include in income relative to the premiums paid? (Enter a "0" if none of the premiums paid should be included in income.)
The amount that Ursula must include in income…
Sonali and Nilesh are married. On December 30th of last year, Sonali contributed $25,000 to a spousal RRSP under which Nilesh is the annuitant. At that time, she also contributed $10,000 to her own individual RRSP. No further contributions were made to the spousal RRSP. Assume on June 15th of next year, the couple has a financial emergency that requires Nilesh to withdraw $15,000 from his spousal RRSP and Sonali to withdraw $10,000 from her individual RRSP. Based on these transactions, what statement is correct? Question 27 options: a) Sonali must report $10,000 on her tax return for next year. b) Nilesh must report $15,000 on his tax return for next year. c) Sonali must report $25,000 on her tax return for next year. d) Nilesh was able to claim a $25,000 RRSP deduction for the previous tax year.
Chapter 14 Solutions
Principles Of Taxation For Business And Investment Planning 2020 Edition
Ch. 14 - Prob. 1QPDCh. 14 - Prob. 2QPDCh. 14 - Why is the formula for computing individual...Ch. 14 - Discuss possible tax policy reasons why...Ch. 14 - Prob. 5QPDCh. 14 - Identify the reasons why individual taxpayers...Ch. 14 - Prob. 7QPDCh. 14 - Individuals who plan to bunch itemized deductions...Ch. 14 - Prob. 9QPDCh. 14 - Single individuals Sam and Zelle were married this...
Ch. 14 - Prob. 11QPDCh. 14 - Under the current rate structure, a high-income...Ch. 14 - Prob. 13QPDCh. 14 - Prob. 14QPDCh. 14 - Prob. 15QPDCh. 14 - Prob. 16QPDCh. 14 - Determine Ms. Arnouts filing status in each of the...Ch. 14 - Determine Mr. Jenkinss 2019 filing status in each...Ch. 14 - Mr. and Mrs. Keppner file a joint income tax...Ch. 14 - Prob. 4APCh. 14 - Ms. West is an unmarried individual. Determine if...Ch. 14 - Mr. and Mrs. Ohlson file a joint income tax...Ch. 14 - Ms. Gomez earned a 91,250 salary, and Mr. Hill...Ch. 14 - Mr. Olaf earned an 89,000 salary, and Mrs. Olaf...Ch. 14 - Mr. and Mrs. Daku have the following income items....Ch. 14 - Mr. and Mrs. Simpson have the following income...Ch. 14 - Ms. Timmons, an unmarried individual, has the...Ch. 14 - Prob. 12APCh. 14 - Mr. Coleman, an unmarried individual, has the...Ch. 14 - Mr. and Mrs. Ludwig have the following income...Ch. 14 - Mr. Rogers, an unmarried individual, had the...Ch. 14 - Ms. Ellis, a single individual, has 115,000...Ch. 14 - Ms. Barnes, an unmarried individual, has 196,400...Ch. 14 - Prob. 18APCh. 14 - Mr. Garrett, a single taxpayer, has 15,700 AGI....Ch. 14 - Danny Liu is 20 years old and is considered a...Ch. 14 - Mr. and Mrs. Palio celebrated the birth of their...Ch. 14 - Mr. Masons salary was 397,000, and Mrs. Masons...Ch. 14 - Prob. 23APCh. 14 - Callie is the 11-year-old daughter and dependent...Ch. 14 - Ms. Gleason, an unmarried taxpayer, had the...Ch. 14 - Mr. and Mrs. Chaulk have three dependent children,...Ch. 14 - Mr. and Mrs. Alexander have two dependent...Ch. 14 - Mr. and Mrs. Coulter have four dependent children,...Ch. 14 - On March 31, Mr. Reinhardt quit his job with MT...Ch. 14 - Mr. and Mrs. Lovejoy are married with no dependent...Ch. 14 - Mr. and Mrs. Kigalis AGI (earned income) was...Ch. 14 - Prob. 32APCh. 14 - Prob. 33APCh. 14 - In January, Ms. Northcut projects that her...Ch. 14 - Mr. and Mrs. Brown report taxable income of...Ch. 14 - Prob. 1IRPCh. 14 - Prob. 2IRPCh. 14 - Prob. 3IRPCh. 14 - Mr. Tilton is a 20-year-old college student. This...Ch. 14 - Prob. 5IRPCh. 14 - Prob. 6IRPCh. 14 - Prob. 7IRPCh. 14 - Prob. 8IRPCh. 14 - Prob. 9IRPCh. 14 - Prob. 10IRPCh. 14 - Mr. and Mrs. Marceleno own a sole proprietorship...Ch. 14 - Prob. 12IRPCh. 14 - Prob. 1RPCh. 14 - Prob. 2RPCh. 14 - Mr. and Mrs. Wilson are married with one dependent...Ch. 14 - Prob. 2TPC
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- Ursula is employed by USA Corporation. USA Corporation provides medical and health, disability, and group term life insurance coverage for its employees. Premiums attributable to Ursula were as follows: (Click the icon to view the premiums attributable to Ursula.) During the year, Ursula suffered a heart attack and subsequently died. Before her death, Ursula collected $14,000 as a reimbursement for medical expenses and $5,000 of disability income. Upon her death, Ursula's husband collected the $40,000 face value of the life insurance policy. Read the requirements. Requirement a. What amount can USA Corporation deduct for premiums attributable to Ursula? (Enter a "0" if none of the premiums are deductible.) The premiums attributable to Ursula that USA Corporation can deduct is Data table Medical and health Disability Group term life (face amount is $40,000) S 3,600 300 200 C Xarrow_forwardReba is a single taxpayer. Lawrence, Reba's 84-year-old dependent grandfather, lived with Reba until this year, when he moved to Lakeside Nursing Home because he needs specialized medical and nursing care. During the year, Reba made the following payments on behalf of Lawrence: Room at Lakeside $24,975 Meals for Lawrence at Lakeside 4,995 Doctor and nurse fees at Lakeside 3,746 Cable TV service for Lawrence's room at Lakeside 500 Total $34,216 Lakeside has medical staff in residence. Disregarding the AGI floor, how much, if any, of these expenses qualifies for a medical expense deduction by Reba?arrow_forwardShawn (53) is unmarried, his two daughters, April (22) and May(19), and his granddaughter Ana lived with her the entire year. May was a full-time student at Your Local Community College, and she received a scholarship that covered the cost of her tuition and related expenses. April was not a student. Ana is April's, daughter. They are all U.S. citizens and have valid social security numbers. Shawn paid a total of $11,700 of the cost of maintaining the home, and April paid $10,300 of the cost of maintaining the home. No one else paid any of their expenses. Shawn’s only income was from wages of $38,350 and interest of $35. Shawn had no foreign income. April’s wages were $17,570; May and Ana had no income and did not contribute towards their own support. April will file her own return and claim Ana as her dependent. Shawn will claim any dependents he is qualified to claim. 1). What is Shawn's correct and most favorable 2020 filing status?   Single.  Married filing jointly.  Married…arrow_forward
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