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Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents (Damarcus, Janine, Michael, and Candice). The couple received salary income of $100,000 and qualified business income of $10,000 from an investment in a
- a) What is the Jacksons’ taxable income, and what is their tax liability or (refund)?
- b) Complete page 1, page 2, and Schedule 1 of the Jacksons’ Form 1040 (use the most recent form available).
- c) What would their taxable income be if their itemized deductions totaled $28,000 instead of $16,500?
- d) What would their taxable income be if they had $0 itemized deductions and $6,000 of for AGI deductions?
- e) Assume the original facts but now suppose the Jacksons also incurred a loss of $5,000 on the sale of some of their investment assets. What effect does the $5,000 loss have on their taxable income?
- f) Assume the original facts but now suppose the Jacksons own investments that appreciated by $10,000 during the year. The Jacksons believe the investments will continue to appreciate, so they did not sell the investments during this year. What is the Jacksons’ taxable income?
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Chapter 4 Solutions
McGraw-Hill's Taxation of Individuals and Business Entities 2020 Edition
- Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
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