Determine gross income and dependency exemptions

Question 1: Under the rules applicable after 2004, determine how many dependency exemptions would be available in each of the following independent situations. Specify whether any such exemptions would come under the qualifying child or the qualifying relative category : a. Richard maintains a household that includes a cousin (age 12), a niece (age 18), and a son (age 20). The cousin and niece are full-time students, and the son is unemployed. Richard furnishes all of their support. b. Minerva provides all of the support of a family friend’s son (age 18) who lives with her. She also furnishes most of the support of her stepmother who does not live with her. c. Raul, a U.S. citizen, lives... click for more

Roth/IRA

What’s the difference between a traditional and Roth IRA? Which do you think is best for you?

Business Taxation - Distinguishing an employee from an independent contractor is very important for tax purposes. Why do you think this is the case?

Distinguishing an employee from an independent contractor is very important for tax purposes. Why do you think this is the case?

TAX ACCOUNTING

See attached file for full problem description.

Tax accounting

See attached file for full problem description. 1. Lori, who is single, purchased a new copier (five-year class property) for $30,000 and new furniture (seven-year class property) for $112,000 on May 20, 2005. Lori expects the taxable income derived from her business (without regard to the amount expensed under § 179) to be about $200,000. Lori wants to elect immediate § 179 expensing, but she doesn’t know which asset she should expense under § 179. a. Determine Lori’s total deduction if the § 179 expense is first taken with respect to the copier. b. Determine Lori’s total deduction if the § 179 expense is first taken with respect to the furniture. c. What is your advice to L... click for more