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Unformatted text preview: involved in searching for an item, but the customer's deposit refund is not an expense. Problem 1:3-38 a. No. Recapture is necessary only if there is a reduction in alimony payments. As the transfer of the residence is not a cash payment, it does not qualify as alimony. b. The payment of $20,000 would be deductible by Fred and taxable to Tammy. c. No. Remarriage is an exception to the recapture provision. d. Her basis is $100,000 Problem 1:3-47 a. $750 of the social security is taxable b. $4,250 of the social security is taxable Problem 1:3-50 Salary included in AGI 25,000 Tax exempt interest not included Dividends included 2,700 60% pension included 2,400 Rental loss included -5,000 Half of social security included 1,200 Total AGI 26,300...
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- Spring '11
- Payment, Taxation in the United States