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please show steps and use the 2018 tax rates Paul and Donna Decker are married taxpayers, ages 44 and 42, who file a joint return
please show steps and use the 2018 tax rates
Paul and Donna Decker are married taxpayers, ages 44 and 42, who file a joint return for Year 1. Paul and Donna have two dependent children, Larry and Jane, ages 17 and 18. The couple also claims Paul's mother Hannah, age 66, as a dependent. Hannah received $7,500 in tax exempt social security. The Deckers estimate that they paid $2,500 of their own money to pay for Hannah's support and estimate that, although Hannah does not pay rent, the rental value of her room would be $200 per month. Paul sold 300 shares of Acme Corporation stock for $50 per share on May 3, Year 1. The Deckers had purchased the stock 10 years ago for $25 per share. They received dividends of $750 on the stock a month before the sale. In addition, Paul and Donna had the following items of income and deduction: Paul's salary $250,000 Paul's federal income tax withheld 56,770 Pauls' State income tax withheld 8,200 Donna's salary 56,000 Donna's federal income tax withheld 6,630 Donna's state income tax withheld 800 Home mortgage interest paid (mortgage principle is $600,000) 7,890 Interest on personal auto loan (not deductible) 1,660 Interest on Visa Card (not deductible) 620 Doctor and hospital bills (including $380 for Hannah and $850 for the children) 9,700 Medical insurance reimbursement 1,430 Prescription drugs 640 Medical insurance premiums 3,810 Real estate taxes paid 8,850 Cash contributions to church 8,500 Value of service to the local library 740 Paul's unreimbursed employee expenses to attend hotel management convention (airfare $340, hotel $170, meals 595, registration fee 340) 945 Compute net tax payable or refund due for the Deckers for Year 1. Ignore any credits for which they might be eligible 8,850 8,500 740 Real estate taxes paid Cash contributions to church Value of service to the local library Paul's unreimbursed employee expenses to attend hotel management convention (airfare $340, hotel $170, meals $95, registration fee 340) 945 Compute net tax payable or refund due for the Deckers for Year 1. Ignore any credits for which they might be eligible. 1. What is the gain or loss on the sale of Acme Corp. stock? (10 pts) 2. What is Paul and Donna's AGI? (10 pts) Paul and Donna Decker are married taxpayers, ages 44 and 42, who file a joint return for Year 1. Paul and Donna have two dependent children, Larry and Jane, ages 17 and 18. The couple also claims Paul's mother Hannah, age 66, as a dependent. Hannah received $7,500 in tax exempt social security. The Deckers estimate that they paid $2,500 of their own money to pay for Hannah's support and estimate that, although Hannah does not pay rent, the rental value of her room would be $200 per month. Paul sold 300 shares of Acme Corporation stock for $50 per share on May 3, Year 1. The Deckers had purchased the stock 10 years ago for $25 per share. They received dividends of $750 on the stock a month before the sale. In addition, Paul and Donna had the following items of income and deduction: Paul's salary $250,000 Paul's federal income tax withheld 56,770 Pauls' State income tax withheld 8,200 Donna's salary 56,000 Donna's federal income tax withheld 6,630 Donna's state income tax withheld 800 Home mortgage interest paid (mortgage principle is $600,000) 7,890 Interest on personal auto loan (not deductible) 1,660 Interest on Visa Card (not deductible) 620 Doctor and hospital bills (including $380 for Hannah and $850 for the children) 9,700 Medical insurance reimbursement 1,430 Prescription drugs 640 Medical insurance premiums 3,810 Real estate taxes paid 8,850 Cash contributions to church 8,500 Value of service to the local library 740 Paul's unreimbursed employee expenses to attend hotel management convention (airfare $340, hotel $170, meals 595, registration fee 340) 945 Compute net tax payable or refund due for the Deckers for Year 1. Ignore any credits for which they might be eligible 8,850 8,500 740 Real estate taxes paid Cash contributions to church Value of service to the local library Paul's unreimbursed employee expenses to attend hotel management convention (airfare $340, hotel $170, meals $95, registration fee 340) 945 Compute net tax payable or refund due for the Deckers for Year 1. Ignore any credits for which they might be eligible. 1. What is the gain or loss on the sale of Acme Corp. stock? (10 pts) 2. What is Paul and Donna's AGI? (10 pts) Step by Step Solution
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