Question 1

Connor is not married and supports Connor's 12 year old child who lives with Connor and has gross income of $2,650 (the child's gross income). Connor works as a self-employed realtor and earned commissions of $146,000 during 2019. Connors business expenses were $18,900 and the only other income was interest of $7,300. Connors other information follows:

Contribution to solo(k) retirement plan $ 5,500

Loss on sale of Alphatech stock held 2 years -3,200

Mortgage interest on primary residence 6,950

State and local property tax on residence 4,350

Property tax included in personal auto registration 960

State sales taxes paid 370

State income taxes paid 3,800

Charitable contributions of cash 3,350

Political contributions 550

All information is for 2019.

Calculate Connor's adjusted gross income and taxable income. Show your work!

AGI = $____________ Taxable Income = $____________

Question 2.

Jessica, who is single with one familial dependent, has the following for the calendar year 2019:

RECEIPTS FOR YEAR

Salary as Business Consultant (part-time) $ 24,200

Interest from Friendly Bank 4,236

Interest from City of Chula Vista bonds 2,000

Social Security benefits 15,000

EXPENDITURES FOR YEAR

Contribution to IRA 920

Itemized deductions 17,400

Jessica claims one $500 dependency credit.

How much are Jessicas adjusted gross income, taxable income and gross tax? Show your work!

AGI = $______________ Taxable Income = $______________ Gross tax $______________

Question 3.

Victoria, age 64, is an unmarried, cash basis, calendar year taxpayer with no dependents. Victoria has the following income and deductions for 2019:

RECEIPTS FOR YEAR

Salary from local school district $ 64,000

Interest from Friendly Bank 1,635

Interest from City of Santee bonds 1,300

Dividends from Tandem Diabetic (qualified) 375

Gain from sale of Tandem Diabetic held 36 months 3,900

EXPENDITURES FOR YEAR

Itemized deductions $ 12,100

Calculate Victorias adjusted gross income, taxable income, and federal income tax. Show your work.

AGI = $____________ Taxable Income = $____________ Gross income tax = $_____________