Reference no: EM133409

Question :

Prepare an essay in which you recommend the most advantageous tax filing status for Spouse A and Spouse B on their federal tax return. In your essay:

1. Describe your recommendation based on current, applicable tax laws.

2. Describe the rules that apply to the following types of income on the couple's tax return.

a. Taxable and nontaxable income

b. Short-term and long-term capital profit or losses

c. Profit or losses from sale of property

d. Partnership income and losses

e. Gains or losses from passive activity

3. Describe your decision to add or exclude each of the kinds of income in part A2 based on present, applicable tax laws.

a. For part A2e, describe the rules that apply to gains or losses from passive activity.

4. Determine the adjustments to income that you would add on the return(s).

a. Describe each adjustment item based on the applicable tax law.

5. Evaluate whether the couple could use the standard deduction or itemized deductions on their return(s).

a. Describe your decision based on current, applicable tax laws.

6. Based on the provided data, check all tax credits available to the couple.

a. Describe any credits based on the applicable tax law.