ACCT 3200 Study Guide - Midterm Guide: Child Tax Credit, Qualified Dividend, Tax Rate

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26 Aug 2016

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In 2014, she reported ,000 of taxable income, including a lt capital gain of . What is her gross tax liability (line 44): ,576, ,176, ,526, ,000. * subtract gain from ,000 and look up ,000 in 2014 tax table. Take 15% of lt gain and add to tax liability: maia (head of household) reported regular taxable income of ,000 and itemized her deductions, deducting ,000 in charitable contributions and in state income taxes. She claimed exemptions for herself and her son hermes (). What is her amti: ,000, ,000, ,900, ,900. Given just this information, what is her amt liability for the year: sh, ,500, , ,475. * must be under age 17, not 15: betty and jay are married filing jointly in 2014. They have six children, each of whom is eligible for the child tax credit. What amount of child tax credit may they claim on their 2014 tax return: ,300 b.

Related Questions

Paige, age 17, is claimed as a dependent on her parents' 2015return, on which they report taxable income of $120,000 (noqualified dividends or capital gains). Paige earned $3,900 petsitting and $4,100 in interest on a savings account. What arePaige's taxable income and tax liability for 2015? If an amount iszero, enter "0".

a. Paige's standard deduction is $ .

b. Paige's personal exemption is $ .

c. Paige's total taxable income is $ ; however,only $ will be taxed at her rate.

d. Compute Paige's "net unearned income" forthe purpose of the kiddie tax. $

e. Assuming that her parents are in the 25% taxbracket and Paige is in the 10% tax bracket, compute her taxliability.
$

magentaherring221

1.( T or F ) An individual who directly owns real estate andearns net rental income for the tax year January 1 â December 31,2018 will have an effective tax rate of 29.6% on it.

2.( T or F ) Jumbo LLC, is treated as a partnership and is ownedby 50% by two individuals, Rod and Tom. Jumbo LLC acquired BighornCenter, an industrial rental property for $2 million and collectsrent from tenants. When Bighorn Centerâs value increases to $3million, Jumbo refinances the debt and distributes $500,000 to bothRod and Tom. Rod and Tom treat the $500,000 as ordinary incomesubject to a 39.6% tax rate.

3.( T or F ) A gain resulting from the sale of REIT shares whenthat REIT is domestically controlled will not result in any U.S.federal income tax withholding for non-U.S. holders of the REITstock.

4.( T or F ) A general partnership can be taxed as a corporationif so elected under the check the box rules.

5.( T or F ) An individual investor can own 100% of a REIT.

6.( T or F ) Since dividends are not UBTI, a tax exempt investorwill not have UBTI on dividend income when debt is used to purchasethe stock that paid the dividend.

7.(T or F) An individual, who qualifies as a real estateprofessional, can treat a particular rental real estate activity asnon-passive even when that individual does not materiallyparticipate in the real estate activity.

8.(T or F) Withholding tax to non-US investors on interestincome and dividends may be reduced under the terms of atreaty.

9. Assume a building, owned by a REIT, increases invalue and the REIT that owns it sells the building for $120 millionand then makes a capital gain distribution to its shareholders.Which of the following is true regarding a U.S. individualinvestor's tax treatment:

A. The gain on the sale will be taxed at the ordinary income taxrate.

B. The gain on the sale will be taxed at the capital gain taxrate.

C. There is no tax on the net gain at the shareholder level.

D. The tax treatment is the same for the US investor as it isfor the foreign investor.

E. None of the above.

11. Provide the tax that would be applied for each ofthe following:

1. Withholding tax on passive-typeincome (interest, dividends, etc..) for non-US investors withrespect to US source income. _______________.

2. Tax imposed on a foreigncorporation based on a deemed distribution of US branchoperations____________________.

3. Withholding tax on US businessincome income that is effectively connected with a United Statestrade or business. ______________.

13. Which of the following would cause the largestproblem for an individual who wants to be taxed as a real estateprofessional (which one would be the most difficult to overcome ifan individual wanted to be treated as a real estateprofessional)?

A. The individual owns only rental real estate properties andspends all of his/her time managing them.
B. The individual works for herself as a commissioned real estatebroker and invests in one rental property on the side.

C. The individual works full time for a company that is activein a real estate trade or business (periodically requiringovertime) but has no ownership in the company.

D. The individual owns and operates a hotel where she spends2,000 hours per year and she also invests in a small portfolio ofrental real estate properties.

E. None of the above would cause problems for an individual tobe classified as a real estate professional.

14. What are the highest tax rates for each of thefollowing scenarios?

____. Operating income from a hotel earned by a foreigncorporation (excluding branch profits tax)

____. Interest income earned by a foreign corporationfrom a US borrower

____. Net rental income earned by an U.S. individual(exclude the passthrough deduction)

____. Capital gain earned by an U.S.individual

____. Interest income earned by a U.S.corporation

____. Capital gain earned by an U.S.corporation

____. Depreciation recapture on the sale of U.S. realestate (Section 1250 property) for an individual

____. Depreciation recapture on the sale of U.S. realestate (Section 1245 property) for an individual

15. Identify the following as "ECI" (effectivelyconnected income) or "Not ECI" (not effectively connected income)if earned by a foreign person:

________Rental income from an actively managed storage center inFlorida

________ Interest income from loans to non-U.S. corporateborrowers.

________ A gain on the sale of a shopping center located inBermuda.

Elaine Case (single with no dependents) has the following transactions in 2016: AGI (exclusive of capital gains and losses) $240,000 Long-term capital gain 22,000 Long-term capital loss (8,000) Short-term capital gain 19,000 Short-term capital loss (23,000)

a. Elaine has a net long-term capital gain of $ 14,000 and a net short-term capital loss of $ 4,000 . As a result, she has an overall net capital gain of $ 10,000

b. Complete the letter to Elaine describing how the net capital gain or loss will be treated on her tax return. Assume Elaine's income from other sources puts her in the 39.6% bracket. If required, round your answer to one decimal place.

Hoffman, Young, Raabe, Maloney, & Nellen, CPAs
5191 Natorp Boulevard<
Mason, OH 45040

March 17, 2017

Ms. Elaine Case
300 Ireland Avenue
Shepherdstown, WV 25443

Dear Ms. Case:

The purpose of this letter is to discuss the result of your stock transactions for 2016. You had $14000 of long-term capital gains and $4000 of short-term capital losses. Subtracting the $?? of losses from the $ ??? of gains results in a $??? net long-term capital gain.

The $??? net long-term capital gain and the details of your stock transactions will be reported on the Schedule D attached to your Form 1040. The $ ??? net capital gain qualifies for the alternative tax on capital gains and will be taxed at a ??? % rate rather than at your marginal tax rate of ??? %.

Thank you for the opportunity to be of service. Please call me if you have additional questions.

Sincerely,

Michelle Brown, CPA
Partner