Answer 1:
$12200
|
Calculation of Andy''s allowable operating expenses:
|
in $
|
|
Qualified client entertainment
|
4000
|
|
Office supplies & expenses
|
8200
|
|
Allowable operating expenses
|
12200
|
Answer 2
$28250
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Calculation of Andy’s final allowable deduction from AGI:
|
in $
|
|
Legitimate client entertainment
|
11250
|
|
Charitable contributions
|
17000
|
|
Allowable deduction
|
28250
|
Answer 3:
$1200
Working Note: According to from 1040, Schedule A qualified mortgage insurance payment are deductable in AGI.
Answer 4:
$13500
|
Calculation of Sal''s AGI:
|
in $
|
|
Sal''s original income
|
43750
|
|
Interest income for bond
|
6500
|
|
Total income from LLC
|
50250
|
|
Alimony paid
|
2750
|
|
Self-qualified tax liability
|
5373.5
|
|
Qualified moving expenses
|
1375
|
|
Education loan interest
|
800
|
|
State income tax paid
|
2000
|
|
Qualified moving expenses
|
13500
|
Answer 5:
$24180
|
Calculation of Neil''s Social Security Taxes:
|
in $
|
|
First job
|
18600
|
|
Second Job
|
5580
|
|
Total social security tax
|
24180
|
Working Note: The social security tax rate for 2013 is 6.2% up to wages of $113,700 and in the case of above wages of $113,700 it is 12.4%.
Answer 6:
$10000
Working Note: Taxable qualified dividend income $10000 would be carried over to her next tax year.
Answer 7:
$14800
|
Calculation of the amount that Louise''s deduct on schedule 2106:
|
in $
|
|
business mileage
|
13875
|
|
parking & tools
|
925
|
|
Louise''s deduction with respect to his business
|
14800
|
Answer 8:
$102950
|
Calculation of Kim''s alternative minimum taxable income:
|
in $
|
|
AGI
|
145000
|
|
Medical expenses
|
2850
|
|
real estate tax
|
3200
|
|
mortgage interest expenses
|
12000
|
|
equity interest expenses
|
5000
|
|
excess miscellaneous expenses
|
19000
|
|
Kim''s taxable income
|
102950
|
Answer 9:
$16500
|
Calculation of Jake''s total medical deduction:
|
in $
|
|
Insurance premium
|
5000
|
|
Hip replacement surgery
|
3000
|
|
prescription vitamins
|
1000
|
|
false teeth
|
7000
|
|
Teeth whitening
|
500
|
|
Final medical deduction
|
16500
|
Answer 10:
$0
Working Note: According to the form 2441 wife’s mother dependency is not deductable and child dependency is deductable under the age of 13, so in this case couple dependent amount is zero.
Answer 11:
$9750
|
Calculation of total charitable contributions:
|
in $
|
|
Boy Scouts
|
250
|
|
Artwork local museum
|
9000
|
|
Artwork donation
|
500
|
|
Total Charitable allowances
|
9750
|
Answer 12:
$1055
|
Calculation of John''s total sales tax deduction:
|
in $
|
|
California
|
581
|
|
Virginia
|
474
|
|
Total sales tax deduction
|
1054
|