ll lIU s50,000 $55,000 $58,000 S60 29,000 25,000 10 :7-59 C wer 2014 past four years AGI 000 order in which the 40 Contributions subject to the 50% limitation What is the amount of the charitable deduction for each year and the order is 7-50 Tim and Monica Nelson are married, file a joint return, and are your newes a pediatrician for the county hospital deduction and carryovers are used? COMPREHENSIVE PROBLEM They provide you with the following information relating to their 2017taxi n: The W-2 form he received the hospital shows wages of $150,000 and state income tax withheld of $8,0ro for the local schools. During the year, she spent 900 hours volunteering. Whes 1. Tim works as 2. Monica spends much of her time volunteering, but also works as a substitute received from the school district shows total wages of $3,888 and state incoma sb 3. On April 13, the couple paid $250 in state taxes with their 2016 state i 4. On December 18, the Nelsons donated a small building to the Boy Scouts of Americ withheld of $85 return. The Nelson's state and local sales taxes in 2017 were $5,500 They purchased the building three years ago for $80,000. A professional appra income ta 5. Tim and Monica both received corrective eye surgery, at a total cost of $3,000. Th 6. On June 1, the couple bought a car for $30,000, paying $18,000 down and borrow 7. On June 10, the Nelsons took out a home equity loan of $20,000 to e pand thei 8. The Nelsons paid a total of $2,300 interest on their original home loan determined the fair market value of the home was $96,000 on December also paid $1,900 in health insurance premiums. ing $12,000. They paid $750 total interest on the loan in 2017 home. They paid a total of $850 interest with their monthly payments on the loan March of the current year. They also sold stock in The Outdoor Corp ration 9. They sold stock in Cabinets, Inc. for $5,200, which they purchased fo. S7900 10. Tim incurred the following expenses related to his profession, none of which wer $12,500, which they purchased several years ago for $8,600. fot reimbursed by his employer Item Subscriptions to medical journals Amount $400 merican Medical Association (AMA) annual membership fee 250 11. During the year, the couple paid their former tax advisor $700 to prepare thei 250 year tax return. 12. The Nelsons do not have children, and they do not provide significant finans port to any family members. Required: Compute the Nelson's taxable income for 2017 TAX STRATEGY PROBLEMS 61 Dean makes a pledge of $30,000 to a local college. The college is willing toa $10,000, Deans marginal tax rate is 35% and he is subject to the loneh, dr her cash or marketable securities in fulfillment of the pledge. De Ajax Corporation worth $30,000. The stock was purchased y gains rate of 15%. Should Dean sell the stock and then donate t five vears ap the cash
