User Account

All Pages

Ch. 6 #62, Taxation

Assignment Help:
Roberta Santos, age 41, is single and lives at 120 Sanborne Avenue, Springfield, IL 60781. Her Social Security number is 123-45-6789. Roberta has been divorced from her former husband, Wayne, for three years. She has a son, Jason, who is 17, and a daughter, June, who is 18. Jason''''''''s Social Security number is 111-11-1111 and June''''''''s is 123-45-6788.Roberta does not want to contribute $3 to the Presidential Election Campaign Fund.

Roberta, an advertising executive, earned a salary of $75,000 in 2011. Her employer withheld $8,500 in Federal income tax, $3,100 in state income tax, and the appropriate amount of FICA tax: $3,150 for Social Security tax and $1,087.50 for Medicare tax.

Roberta has leagl custody of Jason and June. The divorce decree provides that Roberta is to receive the dependency deduction for the children. Jason lives with his father during summer vacation. Wayne indicates that his experiences for Jason are $10,500. Roberta can document that she spent $6,500 for Jason''''''''s support during 2011. In prior years, Roberta gave a signed Form 8332 to Wayne regarding Jason. For 2011, she has decided not to do so. Roberta provides all of June''''''''s support.

Roberta''''''''s mother died on January 7, 2011. Roberta inherited assets worth $625,000 from her mother. As the sole beneficiary of her mother''''''''s life insurance policy, Roberta received insurance proceeds of $300,000. Her mother''''''''s cost basis forb the life insurance policy was $120,000. Roberta''''''''s favorite aunt gave her $13,000 for her birthday in October.

On November 8, 2011, Roberta sells for $20,000 Amber stock that she had purchased for $24,000 from her first cousin, Walt, on December 5,2006. Walt''''''''s cost basis for the stock was $26,000, and the stock was worth $23,000 on December 5, 2006. On December 1, 2011, Roberta sold Falcon stock for $13,500. She had acquired the stock on July 2, 2008, for $7,000.

An examination of ROberta''''''''s records reveals that she received the following:
·Interest income of $2,000 from First Saving Bank.
·Groceries valued at $750 from a local grocery store for being the 100,000th customer.
·Qualified divident income of $1,800 from Amber.
·Interest income of $3,750 on City of Springfield school bonds.
·Alimoby of $15,000 from Wayne.
·Distribution of $4,800 from ST Partnership. Her distributive share of the partnership passive taxable income was $5,300.

From her checkbook, she determines that she made the following payments during 2011:
·Charitable contributions of $3,500 to First Presbyterian Church and $1,500 to the American Red Cross (proper receipts obtained).
·Mortagae interest on her residence of $7,800.
·Property taxes of $3,100 on her residence and $1,100 on her car.
·Estimated Federal income taxes of $3,800 and estimated satate income taxes of $1,000.
·Medical expenses of $5,000 for her and $800 for Jason. In December, her medical insurance policy reimbursed $1,500 of her medical expenses.
·A $1,000 ticket for parking in a handicapped space.
·Attorney''''''''s fees of $500 associated with unsuccessfully contesting the parking ticket.
·Contribution of $250 to the campaign of candidate for governor/
·Because she did not maintain records of the sales tax she paid, she calculates the amount from the sales tax table to be $994.

Calculate Roberta''''''''s net tax payable or refund due for 2011. If you use tax forms, you will need Form 1040 and Schedules A,B, D, and E.....

Related Discussions:- Ch. 6 #62

Trusts, how are trusts considered a tax minimisation vehicle?

how are trusts considered a tax minimisation vehicle?

What is the standard deviation of return, A client of Investment Advisor As...

A client of Investment Advisor Associates (IAA), Gillian Bissett, has recently won $5 million in the lottery and has asked for investment advice. She has indicated that she would l

Advanced tax, The Madison Restaurant was formed a S corporation at the end ...

The Madison Restaurant was formed a S corporation at the end of last year. Bob Buron, owns 60% of the stock, manages the restaurant. Ray Huges owns the remaining 40%

FBT and Depreciation, i wana make a assginment help

i wana make a assginment help

Taxable Income, John and Ellen Brite are married and file a joint return. J...

John and Ellen Brite are married and file a joint return. John owns an unincorporated specialty electrical lightning retail store, Brite-On had the following assets on January 1, 2

What is the difference between sales tax and vat, Sales tax, as compared to...

Sales tax, as compared to VAT is the percentage of revenue imposed on the retail sale of goods. Unlike VAT, sales tax is levied on the entire value of goods and services purchased.

Compute gross income from merchandise sales, 1. Ben lost his job when his e...

1. Ben lost his job when his employer moved its plant. During the year, he collected unemployment benefits for three months, a total of $1,800. While he was waiting to hear from pr

Corporations, C corporation versus S corporation

C corporation versus S corporation

Net profit as percentage of sales, How efficient is the business at turning...

How efficient is the business at turning revenues into profit?

Federal Taxes on income, Ace Company has a 25 percent marginal tax rate and...

Ace Company has a 25 percent marginal tax rate and uses a 10% discount rate to compute NPV. The firm started a venture that will yield the following before-tax cash flows: year 0,

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