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a. How much of this must be reported on Linda’s tax return?
b. Of that amount, how much is taxable gain or loss that Linda
must recognize related to the transfer of the house?
54. Under the alimony recapture rules, what amounts are
designated for recapture reclassification, and what are the tax
consequences?
55. Indicate whether each of the following items is considered a
for AGI, (above-the line) deduction for the 2009 tax year.
Chapter 5, complete problem 54, problem 61, and problem 62
54. Steve purchased a personal residence from Adam. To sell the
residence, Adam agreed to pay $4,500 in points related to Steve’s
mortgage. Discuss the tax consequences from the perspective of
both Steve and Adam.
61. Reynaldo and Sonya, a married couple, had flood damage in
their home due to a faulty water heater during 2009, which
ruined the furniture in their garage. The following items were
completely destroyed and not salvageable
Their homeowner’s insurance policy had a $10,000 deductible for
the personal property, which was deducted from their insurance
reimbursement of $12,700, resulting in a net payment of $2,800.
Their AGI for 2009 was $30,000. What is the amount of casualty
loss that Reynaldo and Sonya can claim on their joint return for
2009?
62. During the year 2009, Ricki, who is not self-employed and
does not receive employer reimbursement for business expenses,
drove her car 5,000 miles to visit clients, 10,000 miles to get to her
office, and 500 miles to attend business-related seminars. She
spent $300 for airfare to another business seminar and $200 for
parking at her office. Using the car expense rate of 55 cents per