Introduction To The Taxation Of Individuals - Ch15

Introduction To The Taxation Of Individuals - Ch15 -...

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CHAPTER 15 INTRODUCTION TO THE TAXATION OF INDIVIDUALS SOLUTIONS TO PROBLEM MATERIALS Status: Q/P Question/ Present in Prior Problem Topic Edition Edition 1 Taxable income calculation New 2 Taxable income calculation New 3 Taxable income calculation New 4 Standard deduction of dependent Unchanged 4 5 Personal and dependency exemptions Unchanged 5 6 Ethics problem Unchanged 6 7 Determine taxable income New 8 Dependents tax liability—unearned income Modified 8 9 Tax liability calculations New 10 Marriage penalty Modified 10 11 Tax planning: alternating years for itemized Unchanged 11 deductions with standard deduction 12 Alimony and property settlement Unchanged 12 13 Prizes and awards Modified 13 14 Social security benefits Unchanged 14 15 Scholarship Unchanged 15 16 Damages Unchanged 16 17 Medical expense deduction and reimbursement Modified 17 18 Ethics problem Unchanged 18 19 Issue recognition Unchanged 19 20 Capital expenditures as medical expense deduction New 21 State income tax deduction and refund Unchanged 21 22 Investment interest expense: net Unchanged 22 investment income 23 Investment interest expense New 24 Home equity loan: calculation of interest New expense deduction 25 Charitable contribution-reduced deduction election Unchanged 25 15-1
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15-2 2003 Entities Volume/Solutions Manual Status: Q/P Question/ Present in Prior Problem Topic Edition Edition 26 Choice of property for contribution Modified 26 27 Issue recognition Modified 27 28 Overall limitations on certain itemized deductions Modified 28 29 Adoption expense credit Modified 29 30 Child care credit: payment to relatives Unchanged 31 31 Credit for child and dependent care expenses: New student spouse, payments to relatives 32 Education tax credit Unchanged 33 33 Earned income credit Unchanged 34 34 Earned income credit New 35 Earned income credit Modified 35 36 Cumulative New 37 Cumulative Modified 37 38 Cumulative Modified 38 Bridge Discipline Problem 1 Marriage penalty Unchanged 1 2 Investment alternatives Modified 2 3 Investment alternatives Unchanged 3 Research Problem 1 Filing status: qualifying for abandoned Unchanged 1 spouse treatment 2 Joint return and innocent spouse relief New 3 Alimony Unchanged 3 4 Education tax credit strategy New 5 Earned income credit Unchanged 5 6 Internet activity New
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Introduction to the Taxation of Individuals 15-3 PROBLEM MATERIAL 1. a. Adjusted gross income $60,000 Less: Standard deduction (7,850) Personal and dependency exemptions (3 X $3,000) (9,000 ) Taxable income $43,150 pp. 15-6 to 15-8, Figure 15-1, and Table 15-1 b. Adjusted gross income $50,000 Less: Itemized deductions (8,200) Personal and dependency exemptions (3 X $3,000) (9,000 ) Taxable income $32,800 pp. 15-6 to 15-8, Figure 15-1, and Table 15-1 c. Adjusted gross income ($1,500 wages + $1,400 dividends) $2,900 Less: Standard deduction* (1,750) Additional standard deduction (1,150) Personal exemption** ( -0- ) Taxable income $ -0-
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Introduction To The Taxation Of Individuals - Ch15 -...

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