Homework Answers
Question 1:-
(a) If a person is a self employed , he can deduct the amount paid for highly deductible policy for AGI and also he may deduct the amount paid to HSA for AGI.
If Roger is a self employed, he may deduct $4625 ($2500 + $2125) FOR AGI.
(b) Medical expenses paid for the care of the self, spouse and dependents are allowed as an itemized deduction to the extent they are not reimbursed. The medical expense deduction is limited to the amount by which such expenses exceed a threshold percentage of the taxpayer’s AGI. As the question says ignore the threshold percentage we do not consider that. The $2500 paid for the high-deductible policy is included with other medical expenses subject to the 10% floor. The $2125 paid to the HSA is a deduction for AGI.
Therefore, If Roger is an employee he may deduct $2125 for AGI and $2500 from AGI if he itemizes his deductions.
Question 2:-
Before considering any limitations (or reductions) on deductions, Arturo can include $24,700 of the medical expenses and $8892 of the casualty loss when determining his itemized deductions in 2019.
Medical expense:- Even if he expects $17,290 of these expenses to be reimbursed by an insurance company in 2020, he can include all $24,700 of the expenses in determining his medical expense deduction for 2019. He is not required to consider the reimbursement in computing his medical expense deduction for 2019.
Casualty loss:- Casualty loss deduction is $8,892 ($29,640 loss – $20,748 expected reimbursement).
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LO.2 Jayden, a calendar year taxpayer, paid $16,000 in medical expenses and sustained a $20,000 casualty...
LO.2 Jayden, a calendar year taxpayer, paid $16,000 in medical expenses and sustained a $20,000 casualty loss in 2020 the loss occurred in a Federally. declared disaster area). He expects $12,000 of the medical expenses and $14,000 of the casualty loss to be reimbursed by insurance companies in 2021. Before considering any limitations on these deductions, how much can Jayden include in determining his itemized deductions for 2020?
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Problem 17-31 (LO. 1) In the current year, Wilson Enterprises, a calendar year taxpayer, suffers a...
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eBook Calculator Exercise 9-22 (Algorithmic) (LO. 8) In 2019, Ava, an employee, who hles single, has...
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Problem 10-28 (LO. 2) Linda, who files as a single taxpayer, had AGI of $280,000 for 2019. She incurred the following expenses and losses during the year: Medical expenses (before the 10%-of-AGI limitation) $33,000 State and local income taxes 4,800 State sales tax 1,300 Real estate taxes 6,000 Home mortgage interest 5,000 Automobile loan interest 750 Credit card interest 1,000 Charitable contributions 7,000 Casualty loss (before 10% limitation but after $100 floor; not in a Federally declared disaster area) 34,000...
Problem 17-31 (LO. 1) In the current year, Wilson Enterprises, a calendar year taxpayer, suffers a casualty loss of $90,000. The casualty was attributable to a Federally declared disaster. How much of the casualty loss will be deductible by Wilson under the following circumstances? a. Wilson is an individual proprietor and has AGI of $225,000. The casualty loss was a personal loss, and the insurance recovered was $50,000 before any limitations. Wilson can claim a casualty loss as an itemized...
eBook Calculator Exercise 9-22 (Algorithmic) (LO. 8) In 2019, Ava, an employee, who hles single, has AGI of $33,200 and incurred the following miscellaneous itemized deductions this year: • Union dues and work uniforms: $840 • Home office expenses: $2,520 • Unreimbursed employee expenses: $1,176 • Gambling losses to the extent of gambling winnings: $1,825. What is Ava's total itemized deduction related to these items? Feedback Check My Work Many itemized dyductions, such as medical expenses and charitable contributions, are...
eBook Calculator Exercise 9-22 (Algorithmic) (LO. 8) In 2019, Ava, an employee, who hles single, has AGI of $33,200 and incurred the following miscellaneous itemized deductions this year: • Union dues and work uniforms: $840 • Home office expenses: $2,520 • Unreimbursed employee expenses: $1,176 • Gambling losses to the extent of gambling winnings: $1,825. What is Ava's total itemized deduction related to these items? Feedback Check My Work Many itemized dyductions, such as medical expenses and charitable contributions, are...
Problem 10-39 (b) (LO. 2, 3, 4, 5, 6, 7) Antoine is single and has AGI of $277,000 for 2019. He incurred the following expenses and losses during the year: $44,225 Medical expenses before the 10%-of-AGI limitation State and local income taxes 2,700 State sales tax 2,900 Real estate taxes 13,400 Home mortgage interest 12,800 Credit card interest 815 11,700 Charitable contribution Casualty loss before 10% limitation (after $100 floor; not in a Federally declared disaster area) Unreimbursed employee expenses...
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