User Account

All Pages

capital gains, Taxation

Assignment Help:
Dan and Cheryl are married , file a joint return, and have no children. Dan , age 45, is a pharmaceutial salesman and Cheryl, age 42, is a nurse at a local hospital . Dan''s SSN is 400-20-1000 and Cheryl''s SSN is 200-40-8000 and they reside at 2003 Palmetto Drive ,Nashville, TN 28034. Dan is paid according to commisions from sales; however, his compensation is subject to withholding of income and payroll taxes. He also maintains an office in his home as the pharmaceutical company does not have an office in nashville and when he is not traveling, Dan operated his business from his home office. During 2011,Dan earned total compensation from his job of $125,000 , on which $20,000of federal income taxes were withheld, $7,049 of OASDI, and $1,813 of Medicare taxes. State income taxes of $4,000 were withheld. Cheryl earned a salary during 2013 of $$45,400. on which federal taxes withheld were $5,000, OASDI of $2,814, and medicare taxes of $658.

During 2011, Dan and Cheryl had interest income from corporate bonds and bank accounts of $1,450 and qualified dividends from stocks of $5,950. dan also actively trades stocks and had the following results for 2011:

LTCG $4,900

LTCL (3,200)

STCG 0

STCL (7,800)

He had no capital loss carryovers from previous years.

Dan does a considerable amount of travel in connection with his job. He uses his own car and is reimbursed $0.30 per business mile. During 2011, Dan drove his car a total of 38,000 miles ( evenly throughout the year ),of which 32,000 were business related. He also had business-related parking fees and tolls during the year of $280. Dan uses the meliage method for deducting auto expenses. Dan also had the following travel expenses while away from home during the year:

Hotel $4,200

meals 820

Entertainment of customers 1,080

Tips 100

laundry and cleaning 150

total $6,350

Dan was reimbursed for the travel expenses by his employer, pursuant to an accoutable plan, in the amount of $5,080.

Dan''s expenses in connection with his office in the home were as follows:

Office supplies $290

Telephone( separate line ) 1,100

Utilities( entire house ) 3,400

Homeowners insurance 600

Interest and property taxes ( see below for totals )

Repairs and maintenance ( entire house) 800

Dan''s office is 300 square feet and the total square footage of the house is 3,000 square feet. Dan and Cheryl purchased the house on June 12,1996, for $280,000. of which $40,000 is attributable to the land.

Cheryl incurred serveral expenses in connection with her nursing job. She paid $450 in professional dues, $200 in professional hournal, and $350 for uniforms.

Dan and Cheryl had the following other expenditures during the year:

health insurance premiums( afetr-tax) $4,400

Doctor bills 470

real estate taxes on home 2,200

Personal property taxes 400

Morgage interest 15,600

Charitable contributions-cash 9,000

Charitable contributions-GE stock owned for 5 years:

FMV $8,000

Adjusted basis 2,000

tax preparation fees 750

Compute dan and Cheryl''s income tax liability for 2011. Disregard the alternative minimun tax.

Related Discussions:- capital gains

Draw a scatter plot with the share of the economy, 1.  The NGO called Trans...

1.  The NGO called Transparency International (TI) publishes a "Corruption Perceptions Index" (CPI) that ranks countries on a scale of 0 to 10 based on how corrupt their public sec

The maximum capital cost allowance claim, During the current year, Denos Co...

During the current year, Denos Corporation incurred costs of $45,000 for leasehold improvements to its newly rented building. The lease was signed in the current year for an initia

Estate Freeze, Exhibit Additional information • Andy currently owns all of ...

Exhibit Additional information • Andy currently owns all of the shares of Grand Inc., a CCPC with 1,000 common shares issued and outstanding. Grand Inc. operates an active business

Determine dividends per equity share, Provide at least 4 reasons why a firm...

Provide at least 4 reasons why a firm may prefer to repurchase stock than to pay out dividends. What factors have influenced the strong growth in repurchase over the last two decad

Explain 5 threats to auitor, explain 5 threats to auditor

explain 5 threats to auditor

What method of tax accounting used, Jenny is 35 years of age, single and is...

Jenny is 35 years of age, single and is a professional hairdresser. She was born in Australia, however she often travels overseas for extended periods for work purposes. Jenny r

Income tax return, "The $3,600 of property taxes for the house were prorate...

"The $3,600 of property taxes for the house were prorated with $1,950 being apportioned to the seller and $1,650 being apportioned to the buyer. In December of the current year the

Return of invesment.., return of invesment..

return of invesment..

types of taxes, An organization in Australia needs to comply with the stat...

An organization in Australia needs to comply with the statutory requirements of taxation. There are different types of taxes among which a few are common for all the industries and

Explain the characteristics of an efficient tax system, Question 1: (a)...

Question 1: (a) Why does Government intervene in the market's allocation of resources even if the economy is Pareto efficient? (b) What are the principal reasons why marke

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd