Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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 $112,000, contribute $8,250 to charity, and pay $3,600 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 $3,600 and $34,000, 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 $8,250 and state tax payments of $3,600 in each year. d. Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $3,600 and $34,000, 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. Complete this question by entering your answers in the tabs below. Req A Req B Req C Req 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.) 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 < Req A 2021 2022 $ 112,000 $ 112,000 $ 112,000 $ 112,000 Req B >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Advanced Accounting In Canada

Authors: Hilton Murray, Herauf Darrell

7th Edition

1259066487, 978-1259066481

More Books

Students also viewed these Accounting questions

Question

Where do your students find employment?

Answered: 1 week ago

Question

600 lb 20 0.5 ft 30 30 5 ft

Answered: 1 week ago