Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 6-50 (LO 6-2) (Static) Trevor is a single individual who is a cash-method, calendar-year taxpayer. For each of the next two years (2021 and
Problem 6-50 (LO 6-2) (Static) Trevor is a single individual who is a cash-method, calendar-year taxpayer. For each of the next two years (2021 and 2022), Trevor expects to report salary of $80,000, contribute $8,000 to charity, and pay $2,800 in state income taxes. Required: a. Estimate Trevor's taxable income for 2021 and 2022 using the 2021 amounts for the standard deduction for both years. b. Now assume that Trevor combines his anticipated charitable contributions for the next two years and makes the combined contribution in December of 2021. Estimate Trevor's taxable income for each of the next two years using the 2021 amounts for the standard deduction c. Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $2,000 and $10,000, respectively, each year. Estimate Trevor's taxable income for each of the next two years (2021 and 2022) using the 2021 amounts for the standard deduction and also assuming Trevor makes the charitable contribution of $8,000 and state tax payments of $2,800 in each year. d. Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $2,000 and $10,000, respectively, each year. Assume that Trevor makes the charitable contribution for 2022 and pays the real estate taxes for 2022 in December of 2021. Estimate Trevor's taxable income for 2021 and 2022 using the 2021 amounts for the standard deduction, Answer is not complete. Complete this question by entering your answers in the tabs below. Req A Reg B Reg C Reg D Estimate Trevor's taxable income for 2021 and 2022 using the 2021 amounts for the standard deduction for both years. (Amounts to be deducted should be indicated with a minus sign. Leave no field blank. Enter zero if applicable.) S Salary Itemized deductions Standard deduction Greater of standard deduction over itemized deductions From AGI charitable contribution deduction Taxable income Total taxable income for the two years 2021 80,000 $ 10,800 12.550 (12,550) 0X 67,450 2022 80,000 10,800 12,550 (12.550) 0 67,450 134.900 X $
Step 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