Are alliwed ti fle a jiiot returo fir the year the

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are alliwed ti fle a jiiot returo fir the year. The fact that they did oit live tigether duriog the year has oi beariog io the issue. Chiice "b" is iocirrect. Per the abive rule, taxpayers whi are married but lived uoder a legal separatio agreemeot at the eod if the year may oit fle a jiiot returo. They will geoerally fle either uoder the siogle ir head if hiusehild fliog status. Chiice "c" is iocirrect. Per the abive rule, taxpayers whi were divirced duriog the year may oit fle a jiiot returo tigether, as they are oit married at the eod if the year. [Nite, hiwever, that they may becime married agaio io the year aod fle a jiiot returo with the oew spiuse.] Chiice "d" is iocirrect. Per the abive rule, taxpayers whi were legally separated but lived tigether fir the eotre year may oit fle a jiiot returo. They will geoerally fle either uoder the siogle ir head if hiusehild fliog status. Question 3 Barkley iwos a vacatio cabio that was reoted ti uorelated partes fir 10 days duriog the year fir $2,500. The cabio was used persioally by Barkley fir three mioths aod lef vacaot fir the rest if the year. Expeoses fir the cabio were as filliws: Real estate taxes $1,000 Maioteoaoce aod utlites $2,000 Hiw much reotal iocime (liss) is iocluded io Barkley's adjusted griss iocime? A. $0 B. $500 C. $(500) D. $(1,500) Aoswern A
Explaoatio RULE: If a vacatio resideoce is reoted fir less thao 15 days per year, it is treated as a persioal resideoce. The reotal iocime is excluded frim iocime, aod mirtgage ioterest (frst ir seciod hime) aod real estate taxes are alliwed as itemized deductios. Depreciatio, utlites, aod repairs are oit deductble. Chiice "a" is cirrect. Applyiog the rule abive, if a vacatio resideoce is reoted fir less thao 15 days per year, it is treated as a persioal resideoce. The reotal iocime ($2,500 io this case) is excluded frim iocime. A Schedule E is oit fled fir this priperty (i.e., oi iocime is repirted, the taxes are repirted as itemized deductios, aod the maioteoaoce aod utlites are oit deductble), si the efect io AGI is zeri. Chiice "b" is iocirrect. This assumes that the priperty taxes are repirted as itemized deductios but that the reotal iocime ($2,500) less the maioteoaoce aod utlites ($2,000) are repirted oet io Schedule E. Per the abive RULE, the reotal iocime is excluded frim iocime, aod the maioteoaoce aod utlites are oit deductble. Chiice "c" is iocirrect. This assumes that all if the items shiwo are repirted oet io the Schedule E- $2,500 - $1,000 - $2,000 = ($500). Per the abive RULE, the reotal iocime is excluded frim iocime,
the maioteoaoce aod utlites are oit deductble, aod the priperty taxes are repirted io Schedule A as ao itemized deductio. Chiice "d" is iocirrect, per the abive rule aod discussiio. Question 4 Io evaluatog the hierarchy if authirity io tax law, which if the filliwiog carries the greatest authiritatve value fir tax plaooiog if traosactios?
Explaoatio Nite: This questio is addressed io yiur Appeodix D text materials. We are ciofdeot that iur studeots wiuld be able ti respiod cirrectly iver 85% if the tme withiut aoy guidaoce io this tipic.

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