Ken,

$6$

$5$

$,$

$$was injured while skiing in late

$2$

$0$

$2$

$1$

$-$

$$and could no longer work. As a

result, he is paid certain amounts, all of which relate to this injury

$-$

$$he gets a $

$4$

$0$

$,$

$0$

$0$

$0$

annual disability pay from a disability insurance policy that his company had

purchased, for all employees! Nice benefit! Payments started in January

$2$

$0$

$2$

$2$

$.$

In addition, Ken

$$

s employer paid $

$1$

$0$

$,$

$0$

$0$

$0$

$$annually in premiums

$$

$$for life!

$-$

$$to

provide health insurance coverage to Ken

$($

did this for all retired employees

$$

another nice benefit!

$)$

$.$

$$What a deal.

Ken sued back in

$2$

$0$

$2$

$1$

$$

$$the year he got hurt. His hospital costs were HIGH

$-$

$

$4$

$0$

$0$

$,$

$0$

$0$

$0$

$$

$$that year. He paid directly a part of this

$-$

$$$

$2$

$0$

$0$

$,$

$0$

$0$

$0$

$$

$$because there was

some issue with his employer provided medical insurance coverage

$($

later resolved

$)$

$.$

Anyway, he took a Schedule A tax deduction for the $

$2$

$0$

$0$

$,$

$0$

$0$

$0$

$$

$$since it exceeded

$1$

$0$

$\%$

$$of his AGI of

$1$

$0$

$0$

$,$

$0$

$0$

$0$

$$for

$2$

$0$

$2$

$1$

$,$

$$he claimed $

$1$

$9$

$0$

$,$

$0$

$0$

$0$

$$on his Schedule A and

itemized his deductions for

$2$

$0$

$2$

$1$

$!$

$$Once fixed

$$

$$he did get that $

$2$

$0$

$0$

$,$

$0$

$0$

$0$

$$back from

his insurance company, but not until January

$2$

$0$

$2$

$3$

$!$

$$And the insurance company

paid the balance of $

$2$

$0$

$0$

$,$

$0$

$0$

$0$

$$for Ken, BUT paid DIRECTLY to the hospital! WHAT A

NICE PIECE OF COMPENSATION TO HAVE!

His lawsuit got settled FINALLY in

$2$

$0$

$2$

$3$

$$

$$he got $

$8$

$0$

$,$

$0$

$0$

$0$

$$

$$received for damages for

the personal injuries he suffered

$($

two broken legs

$)$

$.$

$$AND $

$2$

$0$

$,$

$0$

$0$

$0$

$$for the emotional

damages he suffered, AND another $

$2$

$0$

$0$

$,$

$0$

$0$

$0$

$$for punitive damages! Dang Ski Resort

was clearly negligent in how they operated that ski lift! THEY BETTER FIX IT

$!$

Anyway, this settlement was be paid to him on

$0$

$4$

$/$

$1$

$5$

$/$

$2$

$0$

$2$

$3$

$.$

$$TAX DAY! Ken invested

this entire $

$3$

$0$

$0$

$,$

$0$

$0$

$0$

$$he received

$$

$$he bought shares of a company that manufactures

ski lifts! The company is based in Germany

$$

$$High Precision Ski Lifts, GmbH

$.$

$$This is

the ONLY stock he owns!

Later in

$2$

$0$

$2$

$3$

$$his lawyer reminds Ken that Ken owes him for his services. Ken and

he had cut a deal so that Ken would pay him hourly, rather than on a contingent fee

basis.

$1$

$0$

$0$

$$hours at $

$5$

$0$

$0$

$$per hour

$=$

$$$

$5$

$0$

$,$

$0$

$0$

$0$

$$bill$.$ Ken paid the bill on

$1$

$2$

$/$

$2$

$5$

$/$

$2$

$0$

$2$

$3$

$.$

Ken tells you that during

$2$

$0$

$2$

$3$

$$he received $

$4$

$0$

$0$

$$in US Treasury bond interest; $

$1$

$0$

$0$

in interest from a bond issued by the state of Delaware; $

$5$

$0$

$0$

$$in interest on a

corporate bond issued by Apple Inc; $

$4$

$0$

$0$

$$in interest income on a State of Maryland

issued bond, and he received $

$5$

$0$

$0$

$$for opening up a new savings account at CAP

ONE Bank

$$

$$he deposited $

$1$

$0$

$,$

$0$

$0$

$0$

$.$

You ask

$$

$$in a package that you gave him, called a

$$

tax organizer

$$

$$

$$all sorts of

questions. You even mention

$$

$$

is there any other income, etc you missed

$$

$$please

be careful and answer completely!

$$

So

$,$

$$Ken$,$ still bummed by the accident of course, digs deeper into his

$$

affairs

$$

$$and

finds that he received the following other things during

$2$

$0$

$2$

$3$

$$

Federal income tax refund $

$2$

$6$

$,$

$0$

$0$

$0$

City of Philadelphia bond interest $

$8$

$0$

$0$

US Treasury Bond interest $

$4$

$0$

$0$

Dividend from common stock he owned in the German Company $

$3$

$0$

$0$

State of Florida bond interest $

$7$

$0$

$0$

Boeing Corporation bond interest $

$6$

$0$

$0$

Form

$1$

$0$

$9$

$9$

$$

$$shows interest income on CAP ONE savings account

$-$

$$$

$4$

$5$

$0$