Ronda is employed as a systems analyst. In the current year, she had AGI of $120,000 and paid the following medical expenses: Medical insurance premiums $3,900 Doctor and dentist bills for Joseph and Carmen (dependent parents) $8,250 Doctor and dentist bills for Ronda $6,750 Prescribed medicines for Ronda $1,125 Joseph and Carmen qualify as Ronda’s dependents. Ronda’s medical insurance policy does not cover them. What is Ronda’s allowable medical expense deduction for the 2023 tax year, assuming she itemizes?

Net unearned income is the amount of unearned income of a child under the age of 19 or a student under age 24 who is a full time student and claimed as a dependent by his or her parents, that is subject to tax at the parents’ rate.

Steve started an S Corp with $55,000 and is the only employee.  A few months later, he loaned the company another $30,000. At the end of the year, the S Corp had a taxable loss of $95,000.  How much can he deduct on his personal tax return?

For income tax purposes income and gross income are the same thing

Brittany (age 35) is single and has AGI of $75,000. She has maxed out her contributions to her 401(k) and wants to make a contribution to her traditional IRA. How much can she contribute and would any of the contribution be deductible?

Kim just finalized her divorce and is ordered to pay alimony to her ex-husband.  Kim’s best friend Beth got divorced in 2017 and has helped Kim thru the process.  Beth was also ordered to pay alimony and let Kim know that these payments are deductible on Beth’s tax return.  Kim was thrilled to learn this as she will also be able to deduct alimony payments to her ex. 

Which one of the following deductions will adjust regular income in calculating AMT?

A short-term capital gain is a gain from a capital asset held for less than 12 months.

Which one of the following best describes the role of the “at-risk” rules?

Last year, Rudolph refinanced his home. Prior to refinancing, his only outstanding debt was the balance due on his original mortgage of $100,000. Rudolph needed some additional money take advantage of an investment opportunity, so upon refinancing, Rudolph took out a 30-year mortgage for $250,000.  As an added benefit to the refi, Rudolph will be able deduct the interest on the entire $250,000.