Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hello I need the answer for these three questions please Problem 1: Medical expenses During the year Barry and Melanie paid the following medical expenses:
Hello I need the answer for these three questions please
Problem 1: Medical expenses During the year Barry and Melanie paid the following medical expenses: Contact lenses ...................................................................... $ 350 Face lift for cosmetic purposes ......................................... 4,000 Doctors bills ......................................................................... 2,350 Prescriptions medicines, drugs, and insulin .................... 1,975 Acupuncture .......................................................................... 600 Medical aids ( wheelchair) .................................................. 300 Dentist fees ............................................................................ 775 New eyeglasses ...................................................................... 525 Treatment provide by an Indian medicine man ................ 400 Cost of weight loss for Barry ................................................ 425 Hospitalization insurance premiums .................................. 3,225 Insurance reimbursements ......................... $ 1,200 Adjusted Gross Income ........................ $ 75,000 In addition, during the year, they drove 300 miles for medical transportation and paid for lodging $ 250 for two nights. Required: 1. Calculate the medical expense deduction for Schedule A of form 1040 . Problem 2: Casualties and Thefts Michael Perez has an apartment full of antique furniture. A fire in the apartment destroys a large part of his furnishings. The destroy furnishings had a fair market value of $ 50,000, and Michael original basis in the furnishing was $ 43,750. He recovers $20,000 from his insurance company. Michael's adjusted gross income for 2011 is $ 53,000. Required: 1. Use Form 4684 to report the loss. Problem 3: Education expenses Jose paid the following amounts for his son to attend Big State University in 2010. - Tuition ................................................................ $ 6,000 Room ................................................................. 5,000 Books .................................................................. 500 A car use at school ............................................ 2,000 Student football tickets ................................... 200 Student spring break party ............................. 500 Spending money .............................................. 5,000 How much of the above is a qualified higher education expenses _________________???? Problem 6-61 Dave Stevens, age 34, is a self-employed physical therapist. His wife Sarah, age 31, teaches English as a Second Language at a local language school.They live at 12637 Pheasant Run, West Bend, Oregon 74658. They paid $8,900 in qualified residence interest and $2,400 in property taxes on their home. They had cash charitable contributions of $14,000. They also paid $180 to a CPA for preparing their federal and state income tax returns for the prior year, $100 of which was for the preparation of Dave's Schedule C. Sarah and Dave earned interest on CDs of $3,200. Sarah's salary for the year is $32,000, from which $9,600 in federal income tax and $1,400 in state income tax were withheld. Dave's office is located at Suite 402 943 Woodview Drive Portland, Oregon 74624, and his employer ID number is 22-758904 Dave has been practicing for four years, and he uses the cash method of accounting. During the current year, Dave recorded the following items of income: Revenue from patient visits Interest earned on the office $300,000 checking balance 225 The following expenses were recorded on the office books: Property taxes on the office Mortgage interest on the office Depreciation on the office Malpractice insurance Utilities Office staff salaries Rent payments on equipment Office magazine subscriptions Office supplies Medical journals $ 4,500 12,000 4,500 37,500 3,750 51,000 15,000 150 24,000 330 Dave pays $50 annually for use of a safety deposit box to store certain confidential documents related to his business. In addition to his medical practice, Dave spends 15 hours every week managing his real estate investments. To make sure he is aware of all current investment strategies and best practices, he subscribes to the following journals: Wall Street Journal U.S. News & World Report Money Magazine $150 55 45 Dave also paid $33,000 in estimated federal income taxes. Prepare Dave and Sarah's tax return (Form 1040, Schedules A, B, C, and SE) for the current year. Disregard any tax credits for which they may be eligibleStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started