Question

5. The following are a list of sources of income. List the additional realizable income and recognized gross income (if any) in the two columns. The tax year for all taxpayers ends on December 31. Situation description Realizable Recognizable income in 2019 | income in 2019 The payroll department at work tells Stephen that his $12,500 bonus for services in 2018 is available for pick-up on December 15, 2018. Stephen goes picks it up on January 2, 2019. Kevin and Stacy are married and file jointly. They purchased a house in 2014 for $325,000, and it has been their primary residence since. At the end of 2019, the house is estimated to be worth $619,000. | They did not sell the house during the year. Take the same setting with Kevin and Stacy above, except say that they sell the house on November 2, 2019 for the $619,000. Eric accepted a job offer from Deloitte in Chicago, which required him to move from his current home in Fairfax, VA to Chicago on June 30, 2019. His moving costs of $2,000 were fully reimbursed by Deloitte by August 15, 2019.

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Note: Realised income is recorded once the cash / income is/ already received and recognized income is recorded as & when the transaction is committed irrespective of whether cash is received immediately or on a future date Situation description Realizable income in 2019 Recognizable income in 2019 The payroll department @ work tells Stephen that his $12500 bonus for services in 2018 is available for pick up on December $12,500 15, 2018. Stephen picks it up on January 2, 2019 Kevin & Stacey are married & file jointly. They purchase a house in 2014 for $325,000 & it has been their primary residence $325,000 since. @ the end of 2019, the house is estimated to be worth $619,000. They did not sell the house during the year Take the same setting with Kevin & Stacey above, except say $619,000 that they sell the house on November 02, 2019 for $619,000 Eric accepted a job offer from Deloitte in Chicago which required him to move from his current home in Fairfax, VA to $2,000 Chicago in June 30, 2019. His moving costs $2000 were fully reimbursed by Deloitte by August 15, 2019. Total $325,000 $633,500