Problem 9-12 (b) (LO. 1, 2, 3) The following information applies to Zachary, who is single, for 2018: Salary $73,000 Alimony paid to his ex-wife (decree executed prior to January 1, 2019) 12,200 Child support payments Cash prize from lottery Capital gain from sale of personal sail boat Appreciation in value of land purchased for investment Capital loss from sale of corporate stock Number of potential dependents Age 9,000 10,000 6,000 25,000 (2,000) Zachary maintains a household for his uncle, who lives in another state. His uncle earned $23,000. Click here to access the standard deduction table to use. Indicate whether the following items are taxable or nontaxable to Zachary. Capital gain from sale of personal sail boat Taxable Taxable Cash prize from lottery Salary Appreciation in value of land purchased for investment Taxable Not taxable Identify whether the items are deductible (fully or partially) by Zachary. Alimony paid to his ex-wife Deductible Child support payments Not deductible Capital loss from sale of corporate stock Deductible Zachary's taxable income in 2018 is $ Exhibit 9.3 Basic Standard Deduction Amounts Filing Status 2017 2018 Single $ 6,350 $ 12,000 Married, filing jointly 12,700 24,000 Surviving spouse 12,700 24,000 Head of household 9,350 18,000 Married, filing separately 6,350 12,000 Exhibit 9.4 Amount of Each Additional Standard Deduction Filing Status 2017 2018 Single $ 1,550 $1,600 Married, filing jointly 1,250 1,300 Surviving spouse 1,250 1,300 Head of household 1,550 1,600 Married, filing separately 1,250 1,300 Problem 9-12 (b) (LO. 1, 2, 3) The following information applies to Zachary, who is single, for 2018: Salary $73,000 Alimony paid to his ex-wife (decree executed prior to January 1, 2019) 12,200 Child support payments Cash prize from lottery Capital gain from sale of personal sail boat Appreciation in value of land purchased for investment Capital loss from sale of corporate stock Number of potential dependents Age 9,000 10,000 6,000 25,000 (2,000) Zachary maintains a household for his uncle, who lives in another state. His uncle earned $23,000. Click here to access the standard deduction table to use. Indicate whether the following items are taxable or nontaxable to Zachary. Capital gain from sale of personal sail boat Taxable Taxable Cash prize from lottery Salary Appreciation in value of land purchased for investment Taxable Not taxable Identify whether the items are deductible (fully or partially) by Zachary. Alimony paid to his ex-wife Deductible Child support payments Not deductible Capital loss from sale of corporate stock Deductible Zachary's taxable income in 2018 is $ Exhibit 9.3 Basic Standard Deduction Amounts Filing Status 2017 2018 Single $ 6,350 $ 12,000 Married, filing jointly 12,700 24,000 Surviving spouse 12,700 24,000 Head of household 9,350 18,000 Married, filing separately 6,350 12,000 Exhibit 9.4 Amount of Each Additional Standard Deduction Filing Status 2017 2018 Single $ 1,550 $1,600 Married, filing jointly 1,250 1,300 Surviving spouse 1,250 1,300 Head of household 1,550 1,600 Married, filing separately 1,250 1,300
