During the year, Addison is involved in the following transactions. What are the possible Federal income tax effects of these transactions?
• Lost money gambling on a trip to a casino.
• Helped pay for her neighbor Howie’s dental bills. Howie is a good friend who is unemployed.
• Received from the IRS a tax refund due to Addison’s overpayment of last year’s Federal income taxes.
• Paid a traffic ticket received while double parking to attend a business meeting.
• Contributed to the mayor’s reelection campaign. The mayor had promised Addison to rezone some of her land.
• Borrowed money from a bank to make a down payment on an automobile.
• Sold a houseboat and a camper on eBay. Both were personal use items, and the gain from one offset the loss from the other.
• Her dependent Aunt Katherine died on June 3 of the year.
• Paid for Katherine’s funeral expenses.
• Paid premiums on her dependent son’s life insurance policy.