During 2017, Marvin, divorced since 2014, supports his dependent father who live

Question

During 2017, Marvin, divorced since 2014, supports his dependent father who lives in Canada, had the following transactions:

Salary                                                                       $95,000

Bank loan (proceeds used to buy personal auto) 10,000

Alimony paid                                                              12,000

Child support paid (lives with mother)    6,000

Gift from aunt                                                            20,000

Home Mortgage Interest                                             7,400

Property taxes on residence    1,400

Charitable contributions                                               1,000

Prepare and attach an Excel or Word file (name the file "Exam 1 - Problem 4) to compute Marvin’s:

AGI

Standard deduction or Itemized deduction

Personal and dependent exemptions

Taxable income

Explanation / Answer

Standard deduction is 6350 for single filing status taxpayers. Since, itemized deductions are more they are considered. Gifts are not part of gross income. Child support is not deductible. Bank loan is not relavant.

Particulars Amount Amount Salary 95000 Total income 95000 Deductions to AGI: Alimony paid 12000 Total deductions 12000 Adjusted gross income 83000 Less: itemized deductions: Home mortgage interest 7400 Property taxes 1400 Charity 1000 Total 9800 Balance 73200 Less personal exemption 4050 Taxable income 69150

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.