Question
What is miscellaneous income? On January 15, of the current year, Paul's father died. From his father's estate, he received stock valued at $30,000 (fathers
What is miscellaneous income?
On January 15, of the current year, Paul's father died. From his father's estate, he received stock valued at $30,000 (fathers basis was $12,000) and his father's house valued at $95,000 (fathers basis in the house was $55,000).Paul slipped on a wet spot in front of a computer store last July. He broke his ankle and was unable to work for two weeks. He incurred $1,300 in medical costs, all of which were paid by the owner of the store. The store also gave him $1,000 for pain and suffering resulting from the injury. ASCI did not pay his salary during the two weeks he missed because of the accident. However, ASCI's disability insurance plan paid him $1,500 in disability pay for the time he was unable to work. Under this plan, ASCI pays the premiums of $500 for the disability insurance as a taxable fringe benefit. The disability plan premiums and the disability benefit payments were not included in Pauls W-2 wages reported in paragraph 3.In August of the current year, he received a federal refund of $60 and a state tax refund of $200 related to the tax returns he filed for the prior year. His itemized deductions for the prior year were $18,800.
0 0 Inheritance from her father's estate Medical expenses reimbursed by computer store Pain and suffering award paid by computer store Federal income tax refund State income tax refund Miscellaneous Income 0 0 0 0Step by Step Solution
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