Question

Required information [The following information applies to the questions displayed below.] Charles has AGI of $37,000...

Required information

[The following information applies to the questions displayed below.]

Charles has AGI of $37,000 and has made the following payments related to (1) land he inherited from his deceased aunt and (2) a personal vacation taken last year.

State inheritance tax on the land $ 1,460
County real estate tax on the land 2,240
School district tax on the land 780
City special assessment on the land (new curbs and gutters) 846
State tax on airline tickets (paid on vacation) 240
Local hotel tax (paid during vacation) 221

Calculate the amount of taxes Charles may include in his itemized deductions for the year under the following circumstances: (Leave no answer blank. Enter zero if applicable.)

c. Suppose that Charles holds the land for appreciation and that the vacation was actually a business trip. (Apply limits if applicable.)

  

Homework Answers

Answer #1

Please find below answer

The amount of deductible taxes if Charles holds the land for appreciation :

Note : the inheritance tax, airline tax and the hotel tax rate are non deductible personal expenses. The city special assesment  is also not deductible becuase it is capitalised to the value of propoerty.

Particulars Amount
Country real state tax on the land $      2,240
School district tax on the land $         780
Deductible taxes from AGI $      3,020
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
[The following information applies to the questions displayed below.] Charles has AGI of $50,000 and has...
[The following information applies to the questions displayed below.] Charles has AGI of $50,000 and has made the following payments related to (1) land he inherited from his deceased aunt and (2) a personal vacation taken last year. State inheritance tax on the land $ 1,430 County real estate tax on the land 1,970 School district tax on the land 873 City special assessment on the land (new curbs and gutters) 813 State tax on airline tickets (paid on vacation)...
Charles has AGI of $44,500 and has made the following payments related to (1) land he...
Charles has AGI of $44,500 and has made the following payments related to (1) land he inherited from his deceased aunt and (2) a personal vacation taken last year. State inheritance tax on the land $ 1,400 County real estate tax on the land 2,400 School district tax on the land 756 City special assessment on the land (new curbs and gutters) 852 State tax on airline tickets (paid on vacation) 144 Local hotel tax (paid during vacation) 213 Calculate...
Required information [The following information applies to the questions displayed below.] In each of the following...
Required information [The following information applies to the questions displayed below.] In each of the following independent cases, indicate the amount (1) deductible for AGI, (2) deductible from AGI, and (3) deductible neither for nor from AGI before considering income limitations or the standard deduction. (Leave no answer blank. Enter zero if applicable.) a. Ted paid $83 rent on a safety deposit box at the bank. In this box he kept the few shares of stock that he owned. b....
Required information [The following information applies to the questions displayed below.] This year, Randy paid $30,850...
Required information [The following information applies to the questions displayed below.] This year, Randy paid $30,850 of interest on his residence. (Randy borrowed $488,000 to buy his residence, and it is currently worth $538,000.) Randy also paid $3,450 of interest on his car loan and $5,625 of margin interest to his stockbroker (investment interest expense). How much of this interest expense can Randy deduct as an itemized deduction under the following circumstances? a. Randy received $2,960 of interest this year...
Required information [The following information applies to the questions displayed below.] Simpson, age 45, is a...
Required information [The following information applies to the questions displayed below.] Simpson, age 45, is a single individual who is employed full-time by Duff Corporation. This year Simpson reports AGI of $50,000 and has incurred the following medical expenses: Dentist charges $ 900 Physician charges 1,800 Optical charges 500 Cost of eyeglasses 300 Hospital charges 2,100 Prescription drugs 250 Over-the-counter drugs 450 Medical insurance premiums (not through an exchange) 775 a. Calculate the amount of medical expenses that will be...
Required information [The following information applies to the questions displayed below.] Indicate the amount (if any)...
Required information [The following information applies to the questions displayed below.] Indicate the amount (if any) that Josh can deduct as an ordinary and necessary business deduction in each of the following situations. (Leave no answers blank. Enter zero if applicable.) a. Josh borrowed $87,500 from First State Bank using his business assets as collateral. He used the money to buy City of Blanksville bonds. Over the course of a year, Josh paid interest of $8,800 on the borrowed funds,...
Required information [The following information applies to the questions displayed below.] Terence, an individual, purchased some...
Required information [The following information applies to the questions displayed below.] Terence, an individual, purchased some property in Sacramento, California, for $225,000 approximately 5 years ago. Terence exchanges his a parcel of land in Sacramento for another piece of land in Folsom, Califonria. What is Terence’s realized gain or loss, recognized gain or loss, and basis in the Folsom property in each of the following alternative scenarios? (Loss amounts should be indicated by a minus sign. Leave no answer blank....
[The following information applies to the questions displayed below.] In 2020, Laureen is currently single. She...
[The following information applies to the questions displayed below.] In 2020, Laureen is currently single. She paid $2,720 of qualified tuition and related expenses for each of her twin daughters Sheri and Meri to attend State University as freshmen ($2,720 each for a total of $5,440). Sheri and Meri qualify as Laureen’s dependents. Laureen also paid $1,910 for her son Ryan’s (also Laureen’s dependent) tuition and related expenses to attend his junior year at State University. Finally, Laureen paid $1,410...
Required information Skip to question [The following information applies to the questions displayed below.] Trey has...
Required information Skip to question [The following information applies to the questions displayed below.] Trey has two dependents, his daughters, ages 14 and 17, at year-end. Trey files a joint return with his wife. What amount of child credit will Trey be able to claim for his daughters under each of the following alternative situations? Use Exhibit 8-8. b. His AGI is $424,200. Amount of child tax credit: c. His AGI is $428,200, and his daughters are ages 10 and...
Required information [The following information applies to the questions displayed below.] Complete the following questions by...
Required information [The following information applies to the questions displayed below.] Complete the following questions by preparing worksheet and journal entries given below. The partnership of Butler, Osman, and Ward was formed several years as a local tax preparation firm. Two partners have reached retirement age and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $53,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash $ 49,000 Liabilities...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT