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The question takes up the entire page, so I took two separate photos of it. It is a tax accounting question. on and Basic Tax

The question takes up the entire page, so I took two separate photos of it. It is a tax accounting question.
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on and Basic Tax Model 45. Logan B. Taylor is a widower whose wife, Sara, died on June 6, 2016. He lives at 4680 Dogwood Lane, Springfield, MO 65801. He is employed as a paralegal by a local law firm. For 2018, he reported the following receipts. Salary $ 80,000 Interest income Money market account at Omni Bank $ 300 Savings account at Bosne State Bank 1,100 City of Springfield general purpose bonds 3,000 4,400 Inheritance from Daniel 60,000 Life insurance proceeds 200,000 Amount from sale of St. Louis lot 80,000 Proceeds from estate sale 9,000 Federal income tax refund (for 2017 tax overpayment) 700 In 2018, Logan inherited securities worth $60,000 from his deceased uncle, Daniel. Logan also was the designated beneficiary of an insurance policy on Daniel's life with a maturity value of $200,000. The lot in St. Louis was purchased on May 2, 2013, for $85,000 and held as an investment. Because the neighborhood has deteriorated, Logan decided to cut his losses and sold the lot on January 5, 2018, for $80,000. The estate sale consisted largely of items belonging to Sara and Daniel (e.g., camper, boat, furniture, and fishing and hunting equipment). Logan estimates that the prop- erty sold originally cost at least twice the $9.000 he received and has declined or stayed the same in value since Sara and Daniel died. Logan's other 2018 expenditures include the following Medical expenses (including $10,500 for dental services) $11,500 Taxes State of Missouri income tax (includes withholdings) $4,200 Property taxes on personal residence 4,500 8,700 Interest on home mortgage 5,600 Contribution to church (paid pledges for 2018 and 2019) 4,800 Logan and his dependents were covered by his employer's health insurance for all of 2018. However, he is subject to a deductible, and dental care is not included. The $10,500 dental charge was for Helen's implants, Helen is loman's De aniel's life ay 2, 2013 has deteriorated, In 2018, Logan inherited securities worth SOU,000 TUNT Logan also was the designated beneficiary of an insurance policy on Daniel's with a maturity value of $200,000. The lot in St. Louis was purchased on May 2.20 for $85,000 and held as an investment. Because the neighborhood has deteriora Logan decided to cut his losses and sold the lot on January 5, 2018, for $80,000. Th estate sale consisted largely of items belonging to Sara and Daniel (e.g., campe boat, furniture, and fishing and hunting equipment). Logan estimates that the prop erty sold originally cost at least twice the $9,000 he received and has declined stayed the same in value since Sara and Daniel died. Logan's other 2018 expenditures include the following Medical expenses (including $10,500 for dental services) $11,500 Taxes State of Missouri income tax (includes withholdings) $4,200 Property taxes on personal residence 4,500 8,700 Interest on home mortgage 5,600 Contribution to church (paid pledges for 2018 and 2019) no 4,800 Logan and his dependents were covered by his employer's health insurance policy for all of 2018. However, he is subject to a deductible, and dental care is not included. The $10,500 dental charge was for Helen's implants. Helen is Logan's widowed mother, who lives with him (see below). Logan normally pledges $2,400 ($200 per month) each year to his church. On December 5, 2018, upon the advice of his pastor, he prepaid his pledge for 2019. Logan's household, all of whom he supports, includes the following Social Security Number Birth Date Logan Taylor (age 48) Helen Taylor (age 70) Asher Taylor (age 23) Mia Taylor (age 22) 123-45-6787 123-45-6780 123-45-6783 123-45-6784 08/30/1970 01/13/1948 07/18/1995 02/16/1996 Helen, Logan's mother, receives a modest Social Security benefit. Asher, a son, is full-time student in dental school and earns $4.500 as a part-time dental assistant Mia, a daughter, does not work and is engaged to be married. Part 1-Tax Computation Using the appropriate forms and schedules, compute Logan's 2018 Federal income tax. Federal income tax of $4,500 was withheld from his wages. If Logan has any overpayment on his income tax, he wants the refund sent to him. Assume that the proper amounts of Social Security and Medicare taxes were withheld, Logan does not want to contribute to the Presidential Election Campaign Fund, Suggested software: ProConnect Tax Online

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