Reference no: EM13858374
Question:
Cecil C. Seymour is a 64-year-old widower. He had income for 2014 as follows
Pension from former employer $39,850
Interest income from Alto National Bank 5,500
Dividends received from IBM 4,500 ance 5,400
Social Security benefits 14,000
Rent income on townhouse 9,000
The cost of the annuity was $46,800, and Cecil was expected to receive a total of 260 monthly payments of $450. Cecil received 22 payments through 2014.
Cecil''s 40 yesar old daughter borrowed $60,000 on 1/2/14 using the money to start a new business, cecil does not charge her interest. becauase she could not afford to pay it. but he does expect to eventually collect the principal Sarah lives with cecil until the business become profitable . Except for housing Sarah provides her own support from her business and $1,600in dividends on stocks that she inherited from her mother.
other relevant information is presented below:
Cecil`s Social Security number 123-45-6785
Address 3840 Springfield Blvd, Alto, GA 30510
Sarah`s Social Security number 123-45-6784
Expenses on rental townhouse:
Utilities 2800
maintenance 1000
depreciation 2000
real estate taz 750
insurance 700
state income tax paid 3500
county personal property tax paid 2100
payments on estimated 2014 federal income tax 5900
charitiable contribution alto baptisit church 6400
federal interest rate 6%
sale tax paid 912
Compute cecils 2014 income tax payable (or refund due)