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In December each year, Eleanor Young contributes 10% of her gross income to the United Way (a 50% organization). Eleanor, who is in the 28% marginal tax bracket, is considering the following alternatives for satisfying the contribution.   Fair Market Value (1)...

Linda, who is a head of household with one dependent, had AGI of $150,000 for 2012. She incurred the following expenses and losses during the year: Medical expenses before the 7.5% of AGI limitation $20,000 State and local income taxes 4,500 State sales tax 1,300 Real...

For calendar year 2012, Stuart and Pamela Gibson file a joint return reflecting AGI of $264,000. Their itemized deductions are as follows: Medical expenses $25,300 Casualty loss after $100 floor (not covered by insurance) 28,600 Home mortgage interest 11,000 Credit...

Alice J. and Bruce M. Byrd are married taxpayers who file a joint return. Their Social Security numbers are 123–45–6789 and 111–11–1111, respectively. Alice’s birthday is September 21, 1964, and Bruce’s is June 27, 1963. They live at 473 Revere Avenue, Lowell, MA...

After several years of a difficult marriage, Donald and Marla agreed to a divorce. As part of the property settlement, Marla transferred to Donald corporate stock, a commercial building, and a personal residence. Donald transferred other property to Marla, but the...

Heather wants to invest $40,000 in a relatively safe venture and has discovered two alternatives that would produce the following reportable ordinary income and loss over the next three years: Year Alternative 1 Income (Loss) Alternative 2 Income (Loss) 1 ($20,000)...

Emily has $100,000 that she wants to invest and is considering the following two options: • Option A: Investment in Redbird Mutual Fund, which is expected to produce interest income of $8,000 per year. • Option B: Investment in Cardinal Limited Partnership (buys,...

Marlo is employed as a full time high school teacher. The school district where he works recently instituted a policy requiring all of its teachers to start working on a master’s degree. Pursuant to this new rule, Marlo spent most of the summer of 2012 taking graduate...

In each of the following independent situations, determine how much, if any, qualifies as a deduction for AGI under § 222 (qualified tuition and related expenses): a. Sophia is single and is employed as an architect. During 2012, she spends $3,900 in tuition to attend...