ACC 456 STUDY Start With a Dream /acc456study.com ACC 456 STUDY Start With a Dream /acc456study.com | Page 17

·
a.What is the amount of state income taxes Joyce may include as
an itemized deduction for 2014?
·
b.What is Joyce’s allowed itemized deduction for state income
taxes for 2015?
· c.What is Joyce’s taxable income for 2015?
· d.What is her AGI for 2016?
7-42
Deduction of Taxes. Dawn, a single, cash-method taxpayer, paid the
following taxes in 2015: Dawn’s employer withheld $5,400 for federal
income taxes, $2,000 for state income taxes, and $3,800 for FICA from
her 2015 paychecks. Dawn purchased a new car and paid $600 in
sales tax and $70 for the license. The car’s FMV was $20,000 and it
weighed 3,000 pounds. The county also assessed a property tax on the
car. The tax was 2% of the car’s value and $10 per hundredweight.
Dawn uses the car 100% of the time for personal purposes. Dawn sold
her house on April 15, 2015. The county’s property tax on the home
for 2015 is $1,850, payable on February 1, 2015. The county’s real
property tax year is the calendar year. Dawn’s AGI for 2015 is $50,000
and her other itemized deductions exclusive of taxes are $4,000
(disregard any leap year).
·
a.What is Dawn’s deduction for taxes in 2015?
·
b.Where on Dawn’s tax return should she report her deduction
for taxes?
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ACC 456 Week 3 Short Response (4-13, 4-15 6-1, 6-13, 6-20,
7-31, 7-32)