Nancy paid the following taxes during the year taxes

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South-Western Federal Taxation 2020: Individual Income Taxes
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Chapter 12 / Exercise 44
South-Western Federal Taxation 2020: Individual Income Taxes
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12.Nancy paid the following taxes during the year:Taxes on residence (for the period from March 1 through August 31)$5,250State motor vehicle tax (based on the value of the personal use automobile)430State income tax3,500Nancy sold her personal residence on June 30, under an agreement in which the real estate taxes were not prorated between the buyer and the seller. What amount qualifies as a deduction from AGI for Nancy?a.$9,180.b.$9,130.c.$7,382.d.$5,382.e.None of the above.ANS: C[(121 days/184 days ×$5,250) + $430 + $3,500] = $7,382. Sales taxes ($3,500) are more than the state income tax ($3,050).
PTS:1REF:p. 10-12 | p. 10-1313.In Lawrence County, the real property tax year is the calendar year. The real property tax be-comes a personal liability of the owner of real property on January 1 in the current real property tax year (assume this year is not a leap year). The tax is payable on June 1. On May 1, Reggie sells his house to Dana for $250,000. On June 1, Dana pays the entire real estate tax of $7,950 for the year ending December 31. How much of the property taxes may Reggie deduct?
PTS:1REF:p. 10-12 | p. 10-13 | Example 18
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South-Western Federal Taxation 2020: Individual Income Taxes
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Chapter 12 / Exercise 44
South-Western Federal Taxation 2020: Individual Income Taxes
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Deductions and Losses: Certain Itemized Deductions10-2314.Brad, who uses the cash method of accounting, lives in a state that imposes an income tax (in-cluding withholding from wages). On April 14, 2008, he files his state return for 2007, paying an additional $600 in state income taxes. During 2008, his withholdings for state income tax pur-poses amount to $3,550. On April 13, 2009, he files his state return for 2008 claiming a refund of $800. Brad receives the refund on August 3, 2009. If he itemizes deductions, how much may Brad claim as a deduction for state income taxes on his Federal income tax return for calendar year 2008 (filed in April 2009)?
PTS:1REF:p. 10-1315.Barry and Larry, who are brothers, are equal owners in Chickadee Corporation. On July 1, 2008, each loans the corporation $10,000 at annual interest of 10%. Both shareholders are on the cash method of accounting, while Chickadee Corporation is on the accrual method. All parties use the calendar year for tax purposes. On June 30, 2009, Chickadee repays the loans of $20,000 together with the specified interest of $2,000. How much of the interest can Chickadee Corporation deduct in 2008?

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