1.

A cash basis calendar year taxpayer owns and operates an apartment building. During 2015, he received the following payments:

Lease cancellation fee from an old tenant	$500
Rent from a new tenant covering the first 15 months	8,000
Security deposit to be returned to the tenant if no damage has occurred	500

What is the taxpayers gross rental income for the year?

2.

Starting in 2014, Mr. West must pay his former spouse $20,000 annually until she dies. This amount will be reduced bu $8,000 if their son attains the age of 18 or leaves the school prior to age 18.

There is a written divorce decree. They did not file a joint return and were not members of the same household. The full amount was paid. What is the amount of Mr. Wests 2014 alimony deductions?

Do not use dollar sign or commas in your answer.

3. Mary, age 67 and Bob, age 65, paid $250,000 for a joint and survivorship annuity that will pay $15,000 per year as long as one of them is alive. The multiple that will be used in determining the expected return under the contract is _______.