Camille Sikorski was divorced last year. She currently owns and provides a home for her 15-year-old daughter,
Question:
Camille Sikorski was divorced last year. She currently owns and provides a home for her 15-year-old daughter, Kaly, and 18-year-old son, Parker. Both children lived in Camille's home for the entire year and Camille paid for all the costs of the maintaining the home. She received a salary of $105,000 and contributed $6,000 of it to a qualified retirement account. She also received $10,000 of alimony from her former husband. Finally, Camille paid $5,000 of expenditures that qualified as itemized deductions.
a. What is Camille's taxable income?
b. What would Camille's taxable income be if she incurred $14,000 of itemized deductions instead of $5,000?
c. Assume the original facts except that Camille's daughter Kaly is 25 years old and a full-time student. Kaly's gross income for the year was $5,000. Kaly provided $3,000 of her own support and Camille provided $5,000 of support. What is Camille's taxable income?
Step by Step Answer:
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver