2, Mary is 48 years old and in good health. She has two dependent children. Her husband died suddenly in 2016. She has gross income of $34,000, no deductions for adjusted gross income, and does not itemize deductions. Mary’s taxable income for 2016 is:
3, Eugenia and Victor are married. For 2016, Eugenia earned $35,000 and Victor earned $30,000. They have decided to file separate returns and are each entitled to claim one personal exemption. They have no deductions for adjusted gross income. Eugenia’s itemized deductions are $7,400 and Victor’s are $5,400. Assuming Eugenia and Victor do not live in a community property state, what is Eugenia’s taxable income?
e.None of these choices are correct
4, Alan bought shares in Coca-Cola for $10,000 on November 15, 2015. On November 1, 2016, he sold the shares for $5,000. He has no other gains or losses in 2016. What does Alan report on his tax return?
a.$5,000 short-term loss
b.$5,000 long-term loss
c.$3,000 ordinary loss and $2,000 short-term carry-forward
d.$3,000 ordinary loss and $2,000 long-term carry-forward
5, On January 1, 1996, Donna bought a single family house to use as a rental. She paid $300,000 for the property and has claimed depreciation of $60,000 over the intervening years. She sells the house on January 1, 2016, for $400,000 incurring selling expense of $24,000. What is Donna’s gain or loss?
|Less: Standard deduction||-12600|
|Less: Personal exemption (4050*3)||-12150|
|Option e $9250|
|Less: Standard deduction or itemwize deduction whichever is higher||-7400|
|Less: Personal exemption||-4050|
|option a $23550|
|c.$3,000 ordinary loss and $2,000 short-term carry-forward|
|There is net short term loss of $5000 out of this $3000 can be|
|offset by other income and $2000 will be carried forward.|
|Sales price less selling expenses (400000-24000)||$376,000|
|Less: Book value of property||-240000|
|option c $136000 gain|