Clem is married and is a skilled carpenter Clems wife Wanda

Clem is married and is a skilled carpenter. Clem\'s wife, Wanda, works part-time as a substitute grade school teacher. Determine the amount of Clem’s expenses that are deductible for AGI this year (if any) under the following circumstances: (Leave no answer blank. Enter zero if applicable.)

Clem is self-employed and this year he incurred $1,005 for tools and supplies related to his job. Since neither were covered by a qualified health plan, Wanda paid health insurance premiums of $4,570 to provide coverage for herself and Clem (not through an exchange).

Clem and Wanda own a garage downtown that they rent to a local business for storage. This year they incurred $1,750 in utilities and depreciation of $1,225.

Clem paid self-employment tax of $15,200 (the employer portion is $7,600), and Wanda had $5,700 of Social Security taxes withheld from her pay.

Clem paid $131 to rent a safe deposit box to store his coin collection. Clem has collected coins intermittently since he was a boy, and he expects to sell his collection when he retires.

Simpson is a single individual who is employed full-time by Duff Corporation. This year Simpson reports AGI of $59,000 and has incurred the following medical expenses:

Calculate the amount of medical expenses that will be included with Simpson’s itemized deductions after any applicable limitations.

Suppose that Simpson was reimbursed for $690 of the physician\'s charges and $1,415 for the hospital costs. Calculate the amount of medical expenses that will be included with Simpson’s itemized deductions after any applicable limitations.

Calculate how much Dan can deduct for taxes as an itemized deduction this year.

Determine the maximum amount of charitable deduction for each of these contributions ignoring the AGI ceiling on charitable contributions and assuming that the American Heart Association plans to sell the antique painting to fund its operations. Ray Ray has owned the painting and Coca-Cola stock since 1990.

Solution

only first four subparts allowed per question:

Determine the amount of Clem’s expenses that are deductible for AGI this year (if any) under the following circumstances:

a)tools and supplies and health are deductible under AGI = 1005+4570 =5575

b)utilities and depreciation are deducted =1750+1225 =2975

c)one half of Se tax is deductible but not social security tax is deductible = 1/2 of 15200 =7600

d) the safe deposit fee isan itemized deduction not a business entity hence 0 deduction.