ACC - LO.3, 8, 11 Bonnie and Jake (ages 35 and 36, respectively)
Question # 00023830
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Updated on: 08/22/2014 01:36 AM Due on: 08/22/2014
LO.3, 8, 11 Bonnie and Jake (ages 35 and 36, respectively) are married with no dependents and live in Montana (not a community property state). Because Jake has large medical expenses, they seek your advice about filing separately to save taxes. Their income and expenses for 2013 are as follows:
Bonnie’s salary $ 42,500
Jake’s salary 26,000
Interest income (joint) 1,500
Rental loss from actively managed rental property (23,000)
Jake’s unreimbursed medical expenses 8,500
All other itemized deductions:*
Bonnie 9,000
Jake 3,400
*None subject to limitations
Determine whether Bonnie and Jake should file jointly or separately for 2013. Show Income, AGI, Deductions and Amount of Tax Owed under both scenarios!
Bonnie’s salary $ 42,500
Jake’s salary 26,000
Interest income (joint) 1,500
Rental loss from actively managed rental property (23,000)
Jake’s unreimbursed medical expenses 8,500
All other itemized deductions:*
Bonnie 9,000
Jake 3,400
*None subject to limitations
Determine whether Bonnie and Jake should file jointly or separately for 2013. Show Income, AGI, Deductions and Amount of Tax Owed under both scenarios!
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Solution: ACC - LO.3, 8, 11 Bonnie and Jake (ages 35 and 36, respectively)