70.2K
Verified Solution
Link Copied!
During 2020, Richard and Greta Van Fleet, who are married and have two dependent children, ages 14 and 16, and have the following information:
Total salaries $102,000
Bank account interest 6,000
State of Idaho bond interest 3,000
Gift from Gretas dad 15,000
Life insurance proceeds (Richards mom died) 100,000
Sale of Qualified Small Business Stock (adj. basis =$500,000) 1,250,000
Dividend income (BMW-based in Germany) 5,000
Long-term capital gains 9,000
Long-term capital losses (5,000)
ABC limited partnership interest (passive)* 28,000
XYZ limited partnership interest (passive)* (31,000)
* (these limited partnerships are not real estate related)
They also incurred the following expenses:
Qualified medical expenses $ 8,500
State & local income taxes paid 7,500
Property taxes on home 2,400
Qualified residence interest (original amount borrowed = $400,000) 11,000
Cash charitable contributions ($7,000 - church; $3,000 St. Jude
Childrens Hospital) 10,000
They have the following federal tax payments:
Income tax withheld $8,400
Estimated tax payments 2,400
Also, they want to make the maximum contribution possible to Roth IRAsfor both of them. Richard is 48, and Greta is 46.
What is the gross (total income), AGI, taxable income, Federal tax liability, and additional tax due or refund due?
Answer & Explanation
Solved by verified expert
