Particulars David K. GIbbs Barbara
Income from Salary (WN1) 53,000 4,900
Income from House Property (WN2) (7,500)
Income from Capital gains (WN3) (4,000)
Income from Other sources (WN4) 771
Gross Total Income 46,271 4,900
Less: Deductions under chap VIA:
U/S 80C - Medical Expenses (LIC) 1,500 1,500
Taxable Income 44,771 3,400
Dollar rate for fy 2009-10 46.29/-
Conversion of Dollars into Indian rupees 20,72,450 1,57,386
Tax there on 5,25,734
Add: Education cess @ 3% 15,773
Tax Liability 5,41,507
Less: TDS 4,16,610 (9000*46.29)
Less: TDS on Lottery 20 (71*30/100)
Tax Payable 1,24,597 NIL
Working notes:
1. Salary Income 50,000
Add: Bonus 3,000
53,000
2. Net Annual value 0
Less: Interest on housing loan 7500
Income from house property (7500)
3. Sale Consideration 10,000
Less: Purchase cost 14,000
Long term capital loss (4,000)
4. Interest accured on bond 700
Lottery 71 (100*50/70)
Income from other sources 750
5. Interest on housing loan is taken as assuming the property is self occupied property.
Submissions Assignment2 David K. Gibbs, age 37 and his wife Barbara, age 33, have two children...
David K. Gibbs, age 37 and his wife Barbara, age 33, have two children Chris and Ellen, ages 4 and 12. David is employed as an engineer for an oil company, and his wife recently completed a degree in accounting and will begin working for a public accounting firm next year. David has compiled the following information for his 2018 tax return. For the current year, David received a salary of $170,000. His employer withheld Federal income taxes of $9,000...
David K. Gibbs, age 37 and his wife Barbara, age 33, have two children Chris and Ellen, ages 4 and 12, David is employed as an engineer for an oil company, and his wife recently completed a degree in accounting and will begin working for a public firm next year. David has compiled the following information for his 2018 tax return. For the current year, David received a salary of $170,000. His employer withheld Federal income taxes of $9,000 and...
Marcus is a 51 year old widower whose wife died in 2017. During 2018, his 16 year old dependent son lived with him for the entire tax year. Marcus's 2018 income consists of salary of $91,000 and interest income of $19,400. He lives in a state that does not have a state income tax. During the year He paid home mortgage interest expense of $21,000 and real estate taxes of $6,200. He also contributed $10,000 in cash to various charities...
John Jones is married with two children. His family consists of his wife Jen Jones and his children James Jones and Jackie Jones. This case study is mainly surrounding John's earnings, but Jen also works and receives a salary of $80,000 which SHOULD be included in the overall taxable income calculation and included on Form 1040 James Jones is 12 years old and lives at home. His parents fully provide for him Jackie jones is a 23 year old full...
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Ralph Reed, who turned 65 in December of 2018 and his wife, Mary, the older woman at 67, have been married for 40 years. They support several family members including Ralph's parents who live down the street, two teenage girls still in high school (under 16) and a son, 22, just finishing graduate school. Ralph, though long suffering, has been paying more than 50% of their support, if not all 100%, throughout 2017. Ralph works full-time and receives a...
Harvey itemized deductions on his 2018 income tax return and was able to deduct all state and local income taxes paid. Harvey plans to itemize deductions again in 2019 and the following information is available regarding state and local income taxes: Taxes withheld in 2019 $12,500 Refund received in 2019 for 2018 tax $500 Assessment paid in 2019 for 2017 tax $300 Assuming he deducts state and local income taxes, the above information should be reported by Harvey in his...
Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents (Damarcus, Janine Jr., Michael, and Candice). The couple received salary income of $100,000 and qualified business income of $10,000 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $200,000 and they sold it for $250,000. The gain on the sale qualified for the exclusion from the sale of...
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 $130,000, qualified business income of $20,500 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $252,500 and they sold it for $302,500. The gain on the sale qualified for the exclusion from the sale of a principal...
. Kevin is single. In 2020, he earned $65,000 in salary this year from his employer and received $10,000 in alimony from his ex-wife. They divorced on July 1, 2017. His employer withheld $9,000 in tax from his salary this year. In addition to the above, the following occurred this year: He decided he did not like his nose. So he paid $2,000 in cosmetic surgery to make it larger and more defined. He paid $2,500 in union dues and...