Question
Willie and Anna Belle are married and have no children or other dependents. The following is their tax information for 2021: Anna Belle's salary $
Willie and Anna Belle are married and have no children or other dependents. The following is their tax information for 2021:
Anna Belle's salary $ 49,000
Inheritance from Willie's uncle 100,000
Insurance proceeds on life of uncle 500,000
Interest on Bibb County Municipal Bond 5,000
Interest on GM Bond 4,000
Anna Bell's Roth IRA contribution 5,500
Moving Expenses 4,000
Nonbusiness bad debt loss 6,000
Short-term capital gain on sale of stock 10,000
Medical Expenses 9,000
Mortgage Interest Expense on first mortgage 8,000
Interest on home equity loan 3,000
State Income Taxes paid in 2021 3,000
Real Estate Taxes on Home 9,000
Cash Charitable contributions 1,000
Uniforms for Anna Belle's nursing job 1,000
Tax Preparation fee to H&R Block 500
In addition, a wind storm caused $15,100 worth of damage on their pool house. The homeowner's insurance did not cover the loss because Annabelle forgot to have this property listed on their insurance policy. This was not a federal disaster.
How would your taxable income change if the cash charitable contributions totaled $10,000 instead of $1,000?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started