Estimate trevor taxable income

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Reference no: EM132218677

Question - Trevor is a single individual who is a cash-method, calendar-year taxpayer. For each of the next two years (year 1 and year 2), Trevor expects to report AGI of $118,000, contribute $8,100 to charity, and pay $3,750 in state income taxes. (Amounts to be deducted should be indicated with a minus sign.)

Required:

a. Estimate Trevor's taxable income for year 1 and year 2 using the 2018 amounts for the standard deduction for both years.

b. Now assume that Trevor combines his anticipated charitable contributions for the next two years and makes the combined contribution in December of year. 1. Estimate Trevor's taxable income for each of the next two years using the 2018 amounts for the standard deduction.

c. Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $3,900 and $38,500, respectively, each year. Estimate Trevor's taxable income for each of the next two years (year 1 and year 2) using the 2018 amounts for the standard deduction and also assuming Trevor makes the charitable contribution of $8,100 and state tax payments of $3,750 in each year.

d. Assume that Trevor makes the charitable contribution for year 2 and pays the real estate taxes for year 2 in December of year 1. Estimate Trevor's taxable income for year 1 and year 2 using the 2018 amounts for the standard deduction.

Reference no: EM132218677

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