ACC 4010 Week 4 Assignment 2 NEW

Tax Deductions for and from AGI

Hank was transferred from Phoenix to North Dakota on March 1 of the current year. He immediately put his home in Phoenix up for rent. The home was rented May 1 to November 30 and was vacant during the month of December. It was rented again on January 1 for six months. What expenses, if any, can Hank deduct on his return? Which deductions are for AGI, and which ones are from AGI?

Tax Deductions on Stolen Items:

During 2012, someone broke into Jacob’s personal residence and took the following items:

Jacob is an employee and used the computer 100% of the time in his employment. Although his homeowner’s insurance policy paid Jacob $7,000 for the stolen computer, Jacob’s employer did not reimburse Jacob for any of the remainder of his loss. Jacob’s AGI for the year, before considering any of the above items, is $50,000. Determine the total deduction for the stolen items on Jacob’s 2012 tax return.

Cost Recovery:

On August 2, 2012, Wendy purchased a new office building for $3.7 million. On October 1, 2012, she began to rent out office space in the building. On July 15, 2016, Wendy sold the office building.

• Determine Wendy’s cost recovery for 2012.
• Determine Wendy’s cost recovery for 2016.

Support your responses with examples.

ACC 4010 Week 3 Assignment 2 Qualified Tuition Program NEW

ACC 4010 Week 2 Assignment 2 Computing the Tax NEW

Comment on the availability of head-of-household filing status in each of the following independent situations.

Al lives alone but maintains the household of his parents. In July 2012, the parents use their savings to purchase a Lexus automobile for $62,000.

Bree maintains a home in which she and her father reside. The father then enters a nursing facility for treatment for a mental illness.

Chloe, a single parent, maintains a home in which she and Dean, Chloe’s unmarried son, live. Dean, age eighteen, earns $5,000 from a part-time job.

Assume the same facts as in (c) except that Dean is age nineteen, not eighteen.

Chee is married and maintains a household in which he and his dependent stepson live.

Evie lives alone but maintains the household where her dependent daughter Zoe lives.

Frank maintains a household that includes Georgia, an unrelated friend who qualifies as his dependent.

Understanding Transactions vis-à-vis Taxes:

Gain on the sale of stock held as an investment for ten months.

Gain on the sale of land held as an investment for four years.

Gain on the sale of a houseboat owned for two years and used for family vacations.

Loss on the sale of a reconditioned motorcycle owned for three years and used for recreational purposes.

Compute Taxable Income:

Compute taxable income in each of the following independent situations.

Drew and Meg, ages forty and forty-one respectively, are married and file a joint return. In addition to four dependent children, they have AGI of $65,000 and itemized deductions of $12,000.

Sybil, age forty, is single and supports her dependent parents, who live with her. Sybil also supports her grandfather, who lives in a nursing home. She has AGI of $80,000 and itemized deductions of $8,000.

Scott, age forty-nine, is a surviving spouse. His household includes two unmarried stepsons who qualify as his dependents. He has AGI of $75,000 and itemized deductions of $10,100.

Amelia, age thirty-three, is an abandoned spouse and maintains a household for her three dependent children. She has AGI of $58,000 and itemized deductions of $9,100.

Dale, age forty-two, is divorced but maintains the home in which he and his daughter, Jill, live. Jill is single and qualifies as Dale’s dependent. Dale has AGI of $64,000 and itemized deductions of $9,900.

Understanding Different Filing Statuses:

In each of the following independent situations, determine Winston’s filing status. Winston is not married.

Winston lives alone, but he maintains a household in which his parents live. The mother qualifies as Winston’s dependent, but the father does not.

Winston lives alone, but he maintains a household in which his married daughter, Karin, lives. Both Karin and her husband (Winston’s son-in-law) qualify as Winston’s dependents.

Winston maintains a household in which he and a family friend, Ward, live. Ward qualifies as Winston’s dependent.

Winston maintains a household in which he and his mother-in-law live. Winston’s wife died last year.

Same as (d), except that Winston’s wife disappeared (i.e., she did not die) two years ago.

ACC 4010 Week 1 Assignment 3 Understanding and Working with Tax Law NEW