Reference no: EM132760663
Question - Calculate taxable income for Daisy and Dermot Douglass based on the following information: The Douglass's file married joint.
Salary $200,000
Interest on State of Mississippi bonds $50,000
Treasury bill interest $20,000
Interest on HSBC bank account $10,000
Walmart dividends $20,000
Workman's compensation $30,000
Unemployment Compensation $20,000
Sole proprietorship income $100,000
Child support received $20,000
Daisy's mother Della, gave her a gift of $100,000
Rental income $20,000
Capital loss $5,000
Partnership loss $40,000
Dermot won $10,000 at the race track.
Scorporation income $20,000
Daisy was the beneficiary of her great uncle's life insurance policy $100,000 Dermot found a rare coin worth $30,000 on the beach.
Daisy's sister Dee repaid a loan from 2010, $20,000
Daisy won $15,000 in a bowling tournament.
Dermot inherited $100,000 from his grandfather
Alimony paid $20,000. The divorce was signed in 2014. Student loan interest paid $1,000
Sales tax paid $5,000
Self Employment tax paid $8,000
Penalty for early withdrawal from timed savings account $1,000
Educator expenses $500
Medical Expenses $40,000
Daisy gave $10,000 to the Smith family. The Smith's family was flooded during a tropical storm
Mortgage interest paid $50,000. The $2,000,000, Mortgage was signed in 2019
Contribution to health savings account $4,000 Contribution to individual retirement account $2,000