4.Jerry and ernie
are comparing their tax situations. Both are paying all of the nursing home
expenses of their parents. Jerry can include the expenses in computing his
medical expense deduction, but Ernie cannot. What explanation can you offer for
the difference?
12.Diane owns a
principal residence in Georgia, a townhouse in San Francisco and a yacht in in
Cape Cod.all of the properties have mortgages on which Diane pays interest.
What strategy should Diane consider to maximize her mortgage interest
deductions.
35Nadia donates
$4000 to eastern university’s athletic
department. The payment quarantees that Nadia will have preferred seating near
the 50 yard line.
a.
Assume that Nadia subsequently buys four $100
game tickets. How much can she deduct as a charitable contribution to the
university’s atlehtic department
b.
Assume Nadia ‘s $4000 donation includes
four $100 game tickets. How much can she
deduct as a charitable deduction to the university athelitc department?
41. In December
each year , Eleanor Young contributes 10% of her gross income to the united way (a 50% organization). Eleanor , who is in
the 28% marginal tax bracket , is considering the following alternatives for
satisfying the contribution.
Fair
market value
Cash donation $23,000
Unimproved land held for six years
($3000 basis) 23,000
Blue Corporation stock held for
eight months ($3000) 23,000
Gold Corporation stock held for
two years ($28,000) 23,000
Eleanor has asked you to help
decide which of the potential contributions listed above will be most
advantageous tax-wise .Evaluate the four alternatives and write a letter to
Eleanor to communicate your advice to her. Her address is 2622 Bayshore Drive
Berkeley, CA94709
44.For calendar
2014 stuart and Pamela Gibson file a joint return reflecting AGI of
$350,000.their itemized deductions are as follows
Casualty loss after $100 floor(not
covered by insurance) $48,600
Home mortgage interest 19,000
Credit card interest 800
Property taxes on home 16,300
Charitable contributions 28,700
State income taxes 18,000
Tax return preparation fees 1,200
Calculate the amount itemized
deductions the gibsons may claim for the year.
