30. Pete competed in the annual E1 Paso Spelling Bee this year lical charny ihr

Question

30. Pete competed in the annual E1 Paso Spelling Bee this year lical charny ihr won, How much of the prze should Pete include in his gros was thinking that ho might eranster ehe ense to income? $25,000 b. $25,000 because prizes are taxable zero because prizes transferred to charities are excludible d. Zero because all prizes are excludible e. Zero because prizes from charities are excludible ju provided services to several clients this year who paid with different types of pr Which of the following payments is not included in Juan's gross income? 31. Juan a. Cash b. Plumbing services performed in exchange for Juan's services c. A used car d. Gold coins e. All of these are included in gross income 32. Jett is employed as a site boss for a construction crew. This year he earned a salary of $45,000 and incurred the following expenses associated with his employment: Professional Dues to Contractors State Society Class on Building Sheds Contractor's Monthly (magazine) Mileage expense travelling to and from work sites Tickets to Braves Baseball (He and his dad enjoy baseball games) $400 $200 $50 $500 $300 What amount of miscellaneous itemized deductions can Tom include with his other allowable temized deductions (after any AGI limitations)? a. $900 b. $300 c. $550 d. $250 e. None of these

Explanation / Answer

30. a. $25,000. Please note that all prizes are not taxable. There are prizes that meet certain criterias becomes non-taxable.

31. All of these are included in gross income.

32. d $250

Total itemized deduction allowable = 400 + 200 + 50 + 500 = $1,150 (Ticket to Bravis Baseball is not an allowable deduction)

AGI limit = 2% of AGI = 2%*45,000 = $900

Total allowable deduction = 1,150 -900 = $250

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