REG 2

Which of the following may not be deducted in the computation of alternative minimum taxable income of an individual?

Sam's year 2 taxable income was $175,000 with a corresponding tax liability of $30,000. For year 3, Sam expects taxable income of $250,000 and a tax liability of $50,000. In order to avoid a penalty for underpayment of estimated tax, what is the minimum amount of year 3 estimated tax payments that Sam can make?

Spencer, who itemizes deductions, had adjusted gross income of $60,000 for the current year. The following additional information is available for the year. Cash contribution to church $4,000 Purchase of art object at church bazaar (with a fair market value of $800 on the date of purchase) $1,200 Donation of used clothing to Salvation Army (fair value evidenced by receipt received) $600...What is the maximum amount Spencer can claim as a deduction for charitable contributions in the current year?

Poole is 45 years old and unmarried. Assume that he is subject to a 15% tax bracket. He had adjusted gross income of $30,000. The following information applies to Poole: Medical expenses $ 15,250 Standard deduction 12,000 Poole wishes to minimize his income tax. What is Poole's total income tax?

For the current year, Val and Pat White filed a joint return. Val earned $40,000 in wages and was covered by his employer's qualified pension plan. Pat was unemployed and received $5,000 in alimony payments (from a divorce agreement executed in 2017) for the first four months of the year before remarrying. The couple had no other income. Each contributed $5,000 to a traditional IRA account. The allowable IRA deduction on their current year joint income tax return is:

Davis, a sole proprietor with no employees, has a SEP IRA plan to which he may contribute and deduct 20 percent of his annual earned income. For this purpose, "earned income" is defined as net self employment earnings reduced by the:

A CPA's adjusted gross income (AGI) for the preceding 12 month tax year exceeds $150,000. Which of the following methods is (are) available to the CPA to compute the required annual payment of estimated tax for the current year in order to make timely estimated tax payments and avoid the underpayment of estimated tax penalty? I. The annualization II. The seasonal

Farr, an unmarried taxpayer, had $70,000 of adjusted gross income and the following deductions for regular income tax purposes: Home mortgage interest on a loan to acquire a principal residence $ 11,000 Deductible real estate property taxes 2,000. What are Farr's total allowable itemized deductions for computing alternative minimum taxable income?

The question below includes actual dates that must be used to determine the appropriate tax treatment of the transaction. Pat's divorce decree, finalized in 2016, requires Pat to make the following transfers to Pat's former spouse during 2020: *Alimony payments of $9,000 to be reduced to $7,000 when their child attains the age of 18. *Property division of stock with a basis of $2,000 and a fair market value of $3,500. What is the amount of Pat's alimony deduction for the year ending

During the year, Barlow moved from Chicago to Miami to start a new job, incurring costs of $1,200 to move household goods and $2,500 in temporary living expenses. Barlow was not reimbursed for any of these expenses. What amount should Barlow deduct as itemized deduction for moving expense?