During the year, Addison is involved in the following transactions. What are the possible income tax ramifications of these transactions? Transaction 1: Lost money gambling on recent trip to a casino. Transaction 2: Helped pay for her neighbor's dental bills. The neighbor is a good friend who is unemployed. Transaction 3: Received from the IRS a tax refund due to Addison's overpayment of last year's Federal income taxes. Gambling losses are deductible to the extent of winnings Barring an exception for dependents, a deduction is allowed for payment of some other person's expenses. A Federal income tax refund income since it is an adjustment of a prior expenditure that deductible. Fines and penalties deductible Political contributions deductible. Transaction 4: Paid a traffic ticket received while double parking to attend a business meeting. Transaction 5: 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. Transaction 6: Borrowed money from a bank to make a down payment on an automobile. Transaction 7: Sold a houseboat and a camper on eBay. Both were personal use items, and the gain from one offset the loss from the other Borrowing money in Income. Gains and losses from the sale of personal-use assets offset each other. The gains taxable and the losses deductible. Transaction 8: Paid for dependent grandfather's funeral expenses. can be claimed for income tax purposes for the funeral expenses. Fines and penalties deductible. Political contributions deductible. Fransaction 4: Paid a traffic ticket received while double parking to attend a business meeting. Transaction 5: 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, Transaction 6: Borrowed money from a bank to make a down payment on an automobile. Transaction 7: Sold a houseboat and a camper on eBay. Both were personal use items, and the gain from one offset the loss from the other Borrowing money In income. Transaction 8: Paid for dependent grandfather's funeral expenses. Transaction 9: Paid premiums on her dependent son's life insurance policy Gains and losses from the sale of personal use assets offset each other. The gains taxable and the losses deductible can be claimed for income tax purposes for the funeral expenses. Premiums on personal life insurance policies deductible even when paid on behalf of a depe Un a recent trip to a casino. Transaction 2: Helped pay for her neighbor's dental bills. The neighbor is a good friend who is unemployed. Transaction 3: Received from the IRS a tax refund due to Addison's overpayment of last year's Federal income taxes. Gambling losses are deductible to the extent of winnings Barring an exception for dependents, a deduction is allowed for payment of some other person's expenses. A Federal income tax refund income since it is an adjustment of a prior wrodifure that deductible is Transaction 4: Paid a traffic ticket received while double parking to attend a business meeting. Fines and penalties is not eductible. Tens asino ransaction 2: Helped pay for her neighbor's dental bills. The eighbor is a good friend who is unemployed. fransaction 3: Received from the IRS a tax refund due to Addison's overpayment of last year's Federal income taxes are deductible to the extent of winnings Barring an exception for dependents, a deduction Is allowed for payment of some other person's expenses. A Federal income tax refund Income since it is an adjustment of a prior expenditure that deductible. Fines ies dedugtible was Transaction 4: Paid a traffic ticket received while double parking to attend a business meeting. Transaction S: 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. Politid was not tions deductible. Borrowing money In income. Transaction 6: Borrowed money from a bank to make a down payment on an automobile. Transaction 7: Sold a houseboat and a camper on eBay. Both were personal use items, and the gain from one offset the loss Gains and losses from the sale of personal use assets offset each other. The gains Addison's overpayment of last year's Federal income taxes. |||||||||| LK THIS 0 income since it is an adjustment of a prior expenditure that deductible Fines and penalties deductible are Political contributions deductible are not Transaction 4: Paid a traffic ticket received while double parking to attend a business meeting Transaction 5: 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 Transaction 6: Borrowed money from a bank to make a down payment on an automobile Transaction 7: Sold a houseboat and a camper on eBay. Both were personal use items, and the gain from one offset the loss from the other. Borrowing money In Income Gains and losses from the sale of personal use assets offset each other. The gains taxable and the losses deductible ghbor is a good friend who is unemployed. Ensaction 3: Received from the IRS a tax refund due to Flison's overpayment of last year's Federal income taxes. allowed for payment of some other person's expenses. A Federal income tax refund income since it is an adjustment of a prior expenditure that deductible. Fines and penalties deductible. Political contributions deductible. ansaction 4: Paid a traffic ticket received while double parking attend a business meeting. ansaction 5: Contributed to the mayor's reelection campaign. he mayor had promised Addison to have some of her land zoned. The mayor was reelected and got Addison's land ezoned. ransaction 6: Borrowed money from a bank to make a down payment on an automobile. Borrowing money in income. Transaction 7: Sold a houseboat and a camper on eBay. Both were personal use items, and the gain from one offset the loss from the other. Transaction 8: Pald for dependent grandfather's funeral expenses. Transaction 9: Pald premiums on her dependent son's life insurance policy. results Gains and losses fro onal use assets does not result fer. The gains taxable and the losses deductible. can be claimed for income tax purposes for the funeral expenses. Premiums on personal life insurance policies deductible even when paid on behalf of a dependent Borrowing money in income. ransaction 6: Borrowed money from a bank to make a down ayment on an automobile. Transaction 7: Sold a houseboat and a camper on eBay. Both were personal use items, and the gain from one offset the loss from the other are Transaction 8: Paid for dependent grandfather's funeral expenses. Gains and losses from the sale of personal use assets offset each other. The gains taxable and the losses deductible. cchr be claimed for income tax pu for th, are not xpenses. Premiums on personal life insurance policies deductible even when paid on beh a dependent Transaction 9: Paid premiums on her dependent son's life insurance policy. Borrowing money in income. he mayor had promised Addison to have some of her land ezoned. The mayor was reelected and got Addison's land ezoned. Transaction 6: Borrowed money from a bank to make a down payment on an automobile. Transaction 7: Sold a houseboat and a camper on eBay. Both were personal use items, and the gain from one offset the loss from the other Transaction 8: Paid for dependent grandfather's funeral expenses. Transaction 9: Pald premiums on her dependent son's life insurance policy Gains and losses from the sale of personal use assets offset each other. The gains taxable and the losses deductible. can be claimed for income tax purposes for the flowpenses. A deduction nal life insurance policies No deduction deductible even when paid on behalf of a dependent re