Salt deduction limited to 10000 for singlemfj loss of

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SALT deduction limited to $10,000 for single/MFJLoss of Personal Exemption2018, the law of “ casualty or theft loss” deduction from AGI is suspended, only casualties related to Federal Disaster Area qualify for an I.D.
Homework # 1717. (LO 4) Cash basis taxpayers deduct state income taxes in the year paid, regardless of the year to which the payment relates, and include refunds as income in the year received (subject to the tax benefit rule).A.$2,830 ($1,400 + $455 + $975)B.Pierre will have income of $630 in 2019 because the tax benefit rule applies
Homework #19If it’s 2018, Miller can deduct all of the interest on the $157,500 first mortgage because it is acquisition indebtedness. None of the interest on the $10,000 home equity loan is deductible. If it’s before 2018, interest of both loans are deductible.
Homework # 20The deduction for a contribution of capital gain property is based on its fair market value, while the deduction for a contribution of ordinary income property is equal to the lesser of the basis or the fair market value.a)B/c Donna did not hold the stock for the long-term holding period, it is short-term capital gain property that is subject to the rules for ordinary income property. Therefore, her deduction is limited to $18,100b)The deduction for a contribution of loss property (FMV < basis) is limited to the FMV on the contribution date.Therefore, Donna’s deduction is $15,000
Homework #39
Homework #39Linda’s itemized deductions are computed asfollows:Medical expenses [$33,000 − (7.5% × $280,000)] = $12,000State and local taxes ($4,800 income and $6,000 property; limited to $10,000) = $10,000Home mortgage interest $5,000Charitable contributions $7,000Total itemized deductions $34,000
Additional cases
Tax Cases-guideEisner v. Macomber tax caseUnderstand who is Eisner and Macomber? What’s their role in the tax case?Year and time frame when this case is decided and publishedWhat special about this case? Where is the case held?What’s the court decision?Perez tax case - egg donationUnderstand who is Perez? Who is respondent and who is petitioner?What court did it held? What’s the court decision?What argument did Perez bring up at court? And how did the court react to it?Roberts v. Commissioner - hobbyWhat court did this case held at? What guidelines did the Court follow?What’s the court decision?What’s Roberts’ argument & supports?
Tips for this examUnderstand the difference between 2017 & 2018 (look at the form 1040!!!)TOTAL INCOME?ADJUSTED GROSS INCOME?TAXABLE INCOME?FOR AGI?FROM AGI?Understand what is deductible? What is tax-exempted? What’s the limitation on itemized deduction? Do as much exercise (book questions) as possible

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