Assignment Week 1 - $16,800 55 Mr Z’s gross income for...

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31. Tom and Linda’s taxable income is $13,650. Adjusted gross income $40,000 Less: Itemized deductions v. $11,400 11,750 Less: Personal exemptions (4 × $3,650) 14,600 Taxable income $13,650 32. Marie’s taxable income is $50,050. Adjusted gross income $70,000 Less: Itemized deductions v. $8,350 9,000 Less: Personal exemptions (3 × $3,650) 10,950 Taxable income $50,050 36. Adjusted itemized deductions are $16,800. Medical expenses $8,000 Property taxes $3,000 Housing interest 4,000 Miscellaneous itemized deductions 5,000 $12,000 Less: of 3% of AGI in excess of $166,800limited to 80% of $12,000 × 3,200 8,800 Adjusted itemized deductions
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Unformatted text preview: $16,800 55. Mr. Z’s gross income for 2009 is $57,850: 2007 50/200 × $ 25,000 = 25% × $ 25,000 = $ 6,250 2008 81/300 × $ 80,000 = 27% × $ 80,000 = 21,600 2009 96/400 × $125,000 = 24% × $125,000 = 30,000 $57,850 69. a. Gross income $700, constructive receipt. b. Deductible because mailed by year-end and subsequently cashed. c. Gross income when received, even though a prepayment because Bill is on the cash basis. d. Gross income, constructive receipt. e. Prepayment of rent is gross income. f. Deductible, even though paid with “borrowed” funds. g. Not gross income until collected....
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