Reference no: EM132534880
Questions -
Q1) During 2019, Linda suffered serious injuries in an automobile accident. She incurred the following costs as a result:
Doctor bills $15,700
Hospital bills 10,300
Physical therapy to recover full mobility 5,000
Transportation to/from hospital and doctor's office 200
Linda is single with no dependents. Her 2019 salary was $68,000. She paid $1,000 in medical and dental insurance premiums, which were withheld from her salary on an after-tax basis, $4,250 in mortgage interest on acquisition indebtedness on her personal residence, and $1,500 in interest on her car loan. She was reimbursed for $15,000 in medical expenses by her health insurer. Calculate her 2019 taxable income.
Q2) In the current year, Cline sold land with a basis of $60,000 to Johnson for $100,000. Johnson paid $20,000 down and agreed to pay $16,000 per year, plus interest, for the next five years, beginning in the second year. Under the installment method, what gain should Cline include in gross income for the tax year following the year of sale?
Q3) Josephus, an unmarried taxpayer filing single with no dependents, has AGI of $1,200,000 and reports the following items in 2019:
Taxable income $ 700,000
Tax preferences 40,000
AMT Adjustments related to itemized deductions 30,000
Regular tax liability $ 150,000
What is Josephus's AMT liability for 2019?