2. LO.1, 5, 8, 9 During the year, Addison is involved in the following transactions:

• Lost money gambling on a recent trip to a casino.

• Helped pay for her neighbor’s dental bills. The neighbor is a good friend who is unemployed.

• Received from the IRS a tax refund due to Addison’s overpayment of last year’s Federal income taxes.

• Paid a traffic ticket received while double parking to attend a business meeting.

• Contributed to the mayor’s reelection campaign. The mayor had promised Addison to have some of her land rezoned. The mayor was reelected and got Addison’s land rezoned.

• Borrowed money from a bank to make a down payment on an automobile.
• Sold a houseboat and a camper on eBay. Both were personal use items, and the gain from one offset the loss from the other.
• Her dependent grandfather died on June 3 of the year.
• Paid for dependent grandfather’s funeral expenses.
• Paid premiums on her dependent son’s life insurance policy.
What are the possible income tax ramifications of these transactions?