ACC - Stuart and Pamela Gibson file a joint return
Question # 00034403
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Updated on: 12/02/2014 11:34 PM Due on: 12/03/2014
1. For calendar year 2014, Stuart and Pamela Gibson file a joint return reflecting AGI of $350,000. Their itemized deductions are as follows:
Casualty loss after $100 floor (not covered by insurance) $48,600
Home mortgage interest 19,000
Credit card interest 800
Property taxes on home 16,300
Charitable contributions 28,700
State income tax 18,000
Tax return preparation fees 1,200
Calculate the amount of itemized deductions the Gibsons may claim for the year.
2. Sarah has investments in four passive activity partnerships purchased several years ago. Last year the income and losses were as follows:
Activity
Income (Loss)
A
$ 30,000
B
(30,000)
C
(15,000)
D
(5,000)
In the current year, she sold her interest in Activity D for a $10,000 gain. Activity D, which had been profitable until last year, had a current loss of $1,500. How will the sale of Activity D affect Sarah’s taxable income in the current year?
Casualty loss after $100 floor (not covered by insurance) $48,600
Home mortgage interest 19,000
Credit card interest 800
Property taxes on home 16,300
Charitable contributions 28,700
State income tax 18,000
Tax return preparation fees 1,200
Calculate the amount of itemized deductions the Gibsons may claim for the year.
2. Sarah has investments in four passive activity partnerships purchased several years ago. Last year the income and losses were as follows:
Activity
Income (Loss)
A
$ 30,000
B
(30,000)
C
(15,000)
D
(5,000)
In the current year, she sold her interest in Activity D for a $10,000 gain. Activity D, which had been profitable until last year, had a current loss of $1,500. How will the sale of Activity D affect Sarah’s taxable income in the current year?
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Rating:
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Solution: ACC - Stuart and Pamela Gibson file a joint return