Nancy paid the following taxes during the year:
Tax on residence (for the period from March 1 through August 31) $5,250
State motor vehicle tax (based on the value of the personal use automobile) 430
State sales tax 3,500
State income tax 3,050
Nancy sold her personal residence on June 30 of this year under an agreement in which the real estate taxes were not prorated between the buyer
and the seller. What amount qualifies as a deduction from AGI for Nancy?
a. $9,180
b. $9,130
c. $7,382
d. $5,382
e. None of the above
c
RATIONALE: [(121 days/184 days × $5,250) + $430 + $3,500] = $7,382 . Nancy chooses to claim a deduction for the (higher) state sales tax rather than the state income tax.
You might also like to view...
The primary objective of ________ is to provide insights into, and an understanding of, the problem confronting the researcher
A) exploratory research B) conclusive research C) causal research D) descriptive research
Washington Corp. held 1,500 of Vashon Company common stock with a cost of $74,387. The investment is considered a stock investment with insignificant influence. Washington sold the shares on December 13 for $55,275 cash. Prepare Washington's journal entry to record this sale.
What will be an ideal response?
The term used to describe some action taken by a GATT member country in violation of the GATT agreement is: A) null and void
B) unfair and inequitable. C) persona non grata. D) nullification and impairment.
Match the goals in the first column with the items in the second column:
1. short-term goal (a) To retire in 25 years 2. intermediate goal (b) To purchase a home in three years 3. long-term goal (c) To save enough money for books and tuition for next term