Chapter 3 Homework Solutions

Chapter 3 Homework Solutions - Chapter 3 Homework Solutions...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 3 Homework Solutions 2. Gambling losses are deductible only to the extent of gambling gains. Fines and penalties are not deductible. It does not matter whether they stem from personal or business activities. Political contributions are not deductible. It does not matter whether the contribution results in a benefit to the taxpayer. Borrowing money does not result in income. Gains and losses from the sale of personal use assts cannot offset each other. The gains are taxable and the losses are not deductible. A dependency exemption is available for the aunt. The full amount is allowed. No deduction can be claimed for income tax purposes for the funeral expenses. Premiums on personal life insurance policies are not deductible. pp. 3-7, 3-8, 3-13, and Examples 1 and 42 11. a. Heather is a qualifying child to all three parties. b. As the parent, the mother takes precedence. If the mother waives, the exemption goes to whoever has the highest AGI as between the grandmother and the uncle. c. The father should not be an eligible party due to the abode test. (Note: As the facts do not indicate otherwise, it is assumed that Heather’s parents are not divorced). Table 3.4 19. a. Head of household filing status is not available since neither parent qualifies as a dependent. b.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

Chapter 3 Homework Solutions - Chapter 3 Homework Solutions...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online