Question
Denise (D) works as a paralegal and holds two side businesses too! She and her husband Bob divorced on 12/25/17 Merry Christmas! She did not
Denise (D) works as a paralegal and holds two side businesses too! She and her husband Bob divorced on 12/25/17 Merry Christmas! She did not file her 2017 tax return and needs your help. Here are the transactions during 2017, unless noted otherwise (20 points)
Salary - D |
| $80,000 |
Salary - Bob |
| 50,000 |
Interest income on bonds(owned by Denise) |
|
|
Issued by City of Newark NJ |
| $7,000 |
Issued by Apple Corporation |
| 11,000 |
Dividend income Microsoft Corp (owned by Bob) |
| $3,000 |
Recovery from car accidentDenise |
|
|
Cash received for - Personal injury damages (broken leg) |
| 200,000 |
Payment for emotional damage she suffered (nightmares, etc) |
| 110,000 |
Gift from parents of the child she (side job) |
| 30,000 |
Salary from the parents of the child she t (side job) |
| $1 |
Inheritance received from deceased uncle |
| 100,000 |
Prize raffle Denise bought |
| 500 |
Child support paid by D to Bob starting 1/1/18 monthly |
| 1,000 |
City and state income taxes paid by Denise |
| (4,000) |
Bank loan obtained to buy refrigerator for Denise side business |
| 2,000 |
Net Profit from Ds side business Cupcakes By D |
| 2,000 |
Paid first alimony payment to Bob on 12/31/17 |
| (1,000) |
Loss on sale of bicycle used for personal pleasure |
| (400) |
Gain on sale of boat owned for personal use |
| 5,000 |
Gain on sale of Dupont stock (held for 18 months as an investment) |
| 6,000 |
Property taxes paid |
| (12,000) |
Denise has 2 children under age 8, who lived with Bob after the divorce and who he supports and will support more than 50% of the cost to raise them. She hardly ever sees the kids! Denises ex-husband Bob died in 2019 - sad.
Look at the tax formula all income and take out amounts that can be excluded. Thats the starting point. Then certain above the line adjustments get made to arrive at AGI. Then certain below the line adjustments get made to arrive at Taxable Income.
What is Ds Adjusted Gross Income for 2017? ______________
What is Ds taxable income for 2017? _______________
Assume Standard Deduction 2017 Single $6000; HOH $9,000; MFJ $12,000.
-2018 Single 12,000; HOH $18,000; MFJ $24,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started