Sally's adjusted gross income is $38,000. She owns a home and has a mortgage interest expense of $9500, charitable contributions of $1500, property tax of $7000 and interest on her car loan of $2100. This year she also had medical expenses of $2000. She is allowed a standard deduction of $12,000. What is Sally's taxable income?
Particulars | Amount |
Sally's Gross Income | 38,000 |
Less: Mortgage Interest Expense | (9,500) |
Less: Charitable Contributions | (1,500) |
Less: Property Tax | (7,000) |
Less: Standard Deduction | (12,000) |
Sally's Taxable Income | $ 8,000 |
NOTE: Interest on car loan and medical expenses is not deductible.
Sally's adjusted gross income is $38,000. She owns a home and has a mortgage interest expense...
Molly Whitman is a single taxpayer under the age of 65 and has adjusted gross income (AGI) in 2019 equal to $215,000. She reported the following financial information pertaining to her 2019 activities: a) Molly incurs $6,800 of qualified medical expenses in 2019. b) Molly's state income tax withholdings for 2019 equal $6,100. c) In 2019, Molly was due a refund of $725 for overpaying her 2018 state taxes. She elected to have this overpayment applied toward her 2019 state...
Term Answer Description Adjustments A. This is mortgage interest expense. Adjusted gross income B. This is taxed as ordinary income if held less than 12 months. C. Examples of this term include charitable deductions,, state and local taxes, and moving Deductions expenses. D. This is a claim made by the taxpayer for each person supported by the taxpayer's Standard deduction income. Itemized deduction E. This term equals gross income less adjustments. Exemption F. Reduce AGI by the standard deduction and...
Jim and Judy file taxes jointly as a married couple. They have a combined adjusted gross income of $97,651. They can claim two exemptions of $4,000 each. Their Schedule A itemized expenses are as follows: Interest on home mortgage, $11,986; Property taxes on home, $3,762; Total medical expenses, $1,345; and Charitable contributions, $900. What is their taxable income? $81,003 $73,003 $73,903 $71,648
Which of the following is not an allowable itemized deduction from adjusted gross income? Medical expenses. Home mortgage interest. Alimony paid. Charitable contribut
Janet owns a home at the lake. She incurs the following expenses: Mortgage interest Property taxes $1,360 1,545 1.845 Repairs Depreciation 4060 Required: What is the proper treatment of the rental income and expenses in each of the following cases? Use the Tax Court allocation method, if applicable. Round your d e comutatons to 5 decimal places and final answers to nearest wole dollar value Rental Days Personal use Case income Rented Days A $ 9.150 B 12.150 55 C...
Janet owns a home at the lake. She incurs the following expenses: Mortgage interest $1,300 Property taxes 800 Insurance 1,500 Utilities 1,800 Repairs 300 Depreciation 4,000 page 8-31 What is the proper treatment of the rental income and expenses in each of the following cases? Use the Tax Court allocation method, if applicable. Case Rental Income Days Rented Personal-Use Days A $ 9,000 45 10 B 12,000 55 25 C 6,000 10 30 D 22,000 365 –0–
Janice is single, had gross income of $38,000, and incurred the following expenses: Charitable contribution $2,500 Taxes and interest on home 9,000 Legal fees incurred in a tax dispute 1,000 Medical expenses incl a contribution to her HSA of $2,500 4,000 Student Loan Interest 200 Her AGI is: $21,300 $28,800 $35,300 $37,800
11. Sam is single, 30, and has no children. He made a salary of $250,000 with S40,000 in Federal withholding. He has the following items: Medical Mortgage interest Credit card interest Property tax Sales tax State income tax withheld Charitable contributions Tax return preparation fee 8,000 5,000 2,000 2,500 1,500 22,000 1,000 500 Please show your work. Compute the adjusted gross income. Compute the itemized deductions before any limitations. Compute the itemized deductions after any limitations. Compute the taxable income....
1. Kenneth has an adjusted gross income of $114000. His Schedule A expenses were as follows: • Interest on home mortgage, $12500 • Property taxes on home, $4000 • State income tax, $8000 • Charitable contributions, $1000 What will he be able to claim for total itemized deductions? A) $23500 B) He should take the standard deduction. C) $13500 D) $25500 2. Nicole sold shares of Disney Company that were given to her 20 years ago by her grandmother to...
Jane’s gross monthly income is $3,300. She is applying for a mortgage loan that will have a $800 monthly mortgage payment (principal and interest). In addition, property taxes will be $200 per month, and homeowner’s insurance will be $50 per month. Jane’s other debt payments are $150 (car loan) and $100 (minimum payments on credit cards.) Will she qualify for a conventional mortgage loan if her lender requires the mortgage debt service ratio to be no more than 30% and...