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Please follow USA Tax Law to solve the following: I Sally is a 36 year-old, divorced, mother of two who lives in West Chester, PA.

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I Sally is a 36 year-old, divorced, mother of two who lives in West Chester, PA. Her two boys, Alex (age 5) and Andrew (age 8) live with her ex-husband, Zach, full-time and attend Chesterbrook Academy, a nearby private elementary school. Zach claims their children as his dependants. Sally works as a senior tax partner at PWC in Philadelphia, PA. Sally's aging mother lives with Sally full-time, and Sally provides full financial support for her. The following transactions occurred over 2019. 1) Sally received $770,000 salary in 2019 from her job at PWC. $200,200 was withheld for federal taxes. 2) Sally generated $540 interest income in 2019 from her savings account. 3) Sally paid Zach $35,000 in alimony payments. She also paid $62,500 in child support for their two children. The child support helps to pay for their private school tuition, food, clothes, and other necessities. Sally and Zach have been divorced since 2016. 4) Sally's younger sister Emma owns and operates a doggy daycare business, The Pampered Pup. Every Monday through Friday Sally drops her dog off there while she is at work. Emma would normally charge a client $5,200 per year for this service. Rather than paying Emma, Sally prepares Emma's personal and business tax returns, and she also keeps the accounting records in order for The Pampered Pup. They figure that the costs of these services are of about equal value to each other. 5) Sally loves to garden in her free time. She has acre of land for tomatoes and other vegetables, and she loves to make fresh tomato salsa that she cans for friends and family. Her salsa became such a hit that she made her hobby into a business and started selling her homemade salsa at local farmers markets. This year Sally made $2,300 in sales. She paid $50 for seeds at the start of the summer, $550 for jars and labels, $300 for organic vegetable bug repellant, and $30 for travel; all related to the sale of her homemade salsa. 6) Over the year Sally received $800 in interest income from her investment in PA municipal bonds and $1,000 in interest income from her investment in corporate bonds. 7) In March, Sally got a $5,000 bonus for signing a new client. She contributed $4,000 of her bonus to her kids' 529 education savings plan and spent the rest on new shoes. 8) In May Sally's mom gave Sally a $4,000 gift; and she gave Alex and Andrew both gifts of $3,000 each to contribute to their college education. 9) On May 11th Sally sold ten shares of Walmart Inc. for $82 per share. She originally 10) On June 5th Sally sold three shares of Amazon.com Inc. for $1,684 per share. She originally purchased them in October of 2014 for $322 per share. 11) On July 10th Sally sold 15 shares of Under Armour Inc. for $21 per share. She originally purchased them in November of 2018 for $12 per share. 12) On December 13th 2018 Sally sold 50 shares of IBM for $113 per share. She originally purchased them in September of 2014 for $191 per share. 13) Sally received a Schedule K-1 from her investment in XYZ Partnership. The K-1 had interest income of $5,000; LTCG of $670; and an R&D tax credit for $800. Calculate Sally's taxable income, and her tax liability for the year. Does she have any carryforwards she needs to keep in mind for 2020? I Sally is a 36 year-old, divorced, mother of two who lives in West Chester, PA. Her two boys, Alex (age 5) and Andrew (age 8) live with her ex-husband, Zach, full-time and attend Chesterbrook Academy, a nearby private elementary school. Zach claims their children as his dependants. Sally works as a senior tax partner at PWC in Philadelphia, PA. Sally's aging mother lives with Sally full-time, and Sally provides full financial support for her. The following transactions occurred over 2019. 1) Sally received $770,000 salary in 2019 from her job at PWC. $200,200 was withheld for federal taxes. 2) Sally generated $540 interest income in 2019 from her savings account. 3) Sally paid Zach $35,000 in alimony payments. She also paid $62,500 in child support for their two children. The child support helps to pay for their private school tuition, food, clothes, and other necessities. Sally and Zach have been divorced since 2016. 4) Sally's younger sister Emma owns and operates a doggy daycare business, The Pampered Pup. Every Monday through Friday Sally drops her dog off there while she is at work. Emma would normally charge a client $5,200 per year for this service. Rather than paying Emma, Sally prepares Emma's personal and business tax returns, and she also keeps the accounting records in order for The Pampered Pup. They figure that the costs of these services are of about equal value to each other. 5) Sally loves to garden in her free time. She has acre of land for tomatoes and other vegetables, and she loves to make fresh tomato salsa that she cans for friends and family. Her salsa became such a hit that she made her hobby into a business and started selling her homemade salsa at local farmers markets. This year Sally made $2,300 in sales. She paid $50 for seeds at the start of the summer, $550 for jars and labels, $300 for organic vegetable bug repellant, and $30 for travel; all related to the sale of her homemade salsa. 6) Over the year Sally received $800 in interest income from her investment in PA municipal bonds and $1,000 in interest income from her investment in corporate bonds. 7) In March, Sally got a $5,000 bonus for signing a new client. She contributed $4,000 of her bonus to her kids' 529 education savings plan and spent the rest on new shoes. 8) In May Sally's mom gave Sally a $4,000 gift; and she gave Alex and Andrew both gifts of $3,000 each to contribute to their college education. 9) On May 11th Sally sold ten shares of Walmart Inc. for $82 per share. She originally 10) On June 5th Sally sold three shares of Amazon.com Inc. for $1,684 per share. She originally purchased them in October of 2014 for $322 per share. 11) On July 10th Sally sold 15 shares of Under Armour Inc. for $21 per share. She originally purchased them in November of 2018 for $12 per share. 12) On December 13th 2018 Sally sold 50 shares of IBM for $113 per share. She originally purchased them in September of 2014 for $191 per share. 13) Sally received a Schedule K-1 from her investment in XYZ Partnership. The K-1 had interest income of $5,000; LTCG of $670; and an R&D tax credit for $800. Calculate Sally's taxable income, and her tax liability for the year. Does she have any carryforwards she needs to keep in mind for 2020

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