1.

In 2019, Marvin, a single,cash basis taxpayer, took a $2,400 itemized deduction for state income taxes paid. The deduction was not limited by the SALT cap. His total itemized deductions in 2019 were $15,800. In 2020, Marvin received a $1,000 refund when he filed his 2019 state income tax return.

How much must Marvin include in his gross income for 2020?

2.

In 2019 Joe purchased a 30% interest in a partnership for $300,000. In 2020 the partnership generated $200,000 of taxable income, and Joe withdrew $50,000.

What is Joe's basis in the partnership at the end of 2020?

		$250,000
		$310,000
		$550,000
		$410,000

3.

1. Steven is an accountant and maintains an office in his home. Expenses of the business (other than home office expenses) are $15,000. Steven incurs the following home office expenses:

   His office occupies 420 sq ft of floor space in his residence. Gross income from his business is $34,000.

   Assuming that Steven uses the simplified method, what is his allowable office in the home deduction?

   		$2,100
   		$1,500
   		$420
   		$4,200