Determine Velma’s AGI for 2004

Velma, a married taxpayer filing a joint return, had the following items for 2004: · Salary of $75,000. · Loss of $25,000 on the sale of stock acquired two years ago from Mac, an investor. · Gain of $20,000 on the sale of §1244 stock acquired three years ago. · Stock acquired on January 15, 2004, for $5,000 became worthless on July 1, 2004. Determine Velma’s AGI for 2004. a. $75,000. b. $72,000. c. $70,000. d. $65,000. e. None of the above

What is Brett's allowable casualty loss deduction?

Brett had adjusted gross income of $60,000. During the year, his personal use summer home was partially destroyed by a fire. Pertinent data with respect to the home follows: Cost basis $ 250,000 Value before casualty $ 270,000 Value after casualty $ 130,000 Brett was insured for 70% of his actual loss and he received the insurance settlement. What is Brett's allowable casualty loss deduction? a. $140,000. b. $42,000. c. $36,000. d. $35,900.... click for more

During the year, Rose took a trip from Chicago to Madrid. She was away from home for 20 days. She spent five days vacationing and fifteen days on business (including the three travel days).

During the year, Rose took a trip from Chicago to Madrid. She was away from home for 20 days. She spent five days vacationing and fifteen days on business (including the three travel days). Her expenses are as follows: Air fare $2,000 Lodging (20 days X $80) 1,600 Meals (20 days X $120) 2,400 Valet service (cleaning of laundry) 160 Rose's deduction is: a. $3,760. b. $4,800. c. $4,960. d. $6,160. e. None of the above.

Which, if any, of the following expenses is a miscellaneous itemized deduction subject to the 2 percent floor?

Please answer the following questions: 21. Which, if any, of the following expenses is a miscellaneous itemized deduction subject to the 2 percent floor? a. Union dues. b. Tax preparation fee. c. Appraisal fees d. Safe deposit box fee. e. All of the above. 24. Which of the following qualifies for the medical expense deduction? a. Funeral expenses. b. Health spas. c. Nonprescription drugs. d. Weight reduction programs related to obesity. e. None of the above.

Reba, who holds a bachelor of education degree, is a middle school teacher in Pueblo, Colorado. The school board recently changed its minimum education requirement by prescribing five years of college training. Existing teachers, such as Reba, are allowed 5 years in which to acquire the additional year of education. Pursuant to this requirement, Reba spends her 2004 summer break attending University of Colorado taking education courses.

Reba, who holds a bachelor of education degree, is a middle school teacher in Pueblo, Colorado. The school board recently changed its minimum education requirement by prescribing five years of college training. Existing teachers, such as Reba, are allowed 5 years in which to acquire the additional year of education. Pursuant to this requirement, Reba spends her 2004 summer break attending University of Colorado taking education courses. Her expenses are as follows: Books and tuition $2,250 Meals 800 Lodging ... click for more