MCGRAW-HILL'S TAX.OF INDIV.+BUS.2020
20th Edition
ISBN: 9781259969614
Author: SPILKER
Publisher: MCG
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Chapter 4, Problem 52P
To determine
Determine the tax consequence under the current scenario.
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tim is living with his spouse in California when he finds out that his wife is having an affair. Tim packs his bags and leaves the state to move to Indiana, intending on filing separately. Tim and his spouse cohabitated until June. He earned $50,000 during the year, $30,000 of which was in California. She earned $60,000 during the year. How much wage income does Tim have on his California return and from whom? (Remember, the return is being filed separately)
He has $50,000 in state wages from his pay only, since he's no longer in a community property state.
He has $45,000 in state wages, with $15,000 from half of his state-sourced pay and $30,000 from her half of pay.
He has $55,000 in state wages, with $25,000 from half of his total pay and $30,000 from her half of pay.
He has $30,000 in state wages from his state-sourced pay.
Erica came to Australia from the United States on a working holiday on 1 December
2019 when she finished college. Her parents were separated, and she had been living
between their houses over the last 3 years. All her belongings were packed in a box
and stored in her father's basement when she left for Australia. Over the last 7
months Jane has worked in various jobs in Sydney staying with various friends and
relatives then she went travelling down the east coast of Australia. At the end of
September 2020, she left for New Zealand and intends to go back to the United
States in 2022.
Outline the tax residency consequences for Erica. Explain your answer with
reference to the relevant legislative provisions, case law and the relevant guidance
provided by the ATO.
Jenna, a paid preparer, is preparing a return for her neighbor and close friend, Gerald. Gerald wishes to claim the head of household filing status using his daughter, Sara, as a dependent. Jenna knows that Sara lived with Gerald's ex-wife (Sara's mother) all year. However, when she asked him about this, Gerald replied: "Oh, I understand that you have to ask that. Sara lived with me all year." Then he gave Jenna a knowing wink. Jenna should:
Document her question and Gerald's answer and prepare the return claiming the filing status.
Call Gerald's wife and verify that she will not file a return using the head of household status.
Decline to prepare Gerald's return with the requested filing status. She may not ignore her personal knowledge, no matter what Gerald says.
Obtain a signed statement from Gerald that he agrees to assume the risk of any consequences of the tax position claimed on the return.
Chapter 4 Solutions
MCGRAW-HILL'S TAX.OF INDIV.+BUS.2020
Ch. 4 - How are realized income, gross income, and taxable...Ch. 4 - Prob. 2DQCh. 4 - Prob. 3DQCh. 4 - Why should a taxpayer be interested in the...Ch. 4 - Is it easier to describe what a capital asset is...Ch. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - How do taxpayers determine whether they should...
Ch. 4 - Where does the qualified business income (QBI)...Ch. 4 - Prob. 12DQCh. 4 - Prob. 13DQCh. 4 - Prob. 14DQCh. 4 - Prob. 15DQCh. 4 - Prob. 16DQCh. 4 - Prob. 17DQCh. 4 - Prob. 18DQCh. 4 - Prob. 19DQCh. 4 - Prob. 20DQCh. 4 - How do two taxpayers determine who has priority to...Ch. 4 - Prob. 22DQCh. 4 - Prob. 23DQCh. 4 - Prob. 24DQCh. 4 - Prob. 25DQCh. 4 - For tax purposes, why is the married filing...Ch. 4 - Prob. 27DQCh. 4 - Prob. 28PCh. 4 - David and Lilly Fernandez have determined their...Ch. 4 - Prob. 30PCh. 4 - Prob. 31PCh. 4 - Prob. 32PCh. 4 - Prob. 33PCh. 4 - Prob. 34PCh. 4 - The Samsons are trying to determine whether they...Ch. 4 - Prob. 36PCh. 4 - Francines mother Donna and her father Darren...Ch. 4 - Jamel and Jennifer have been married 30 years and...Ch. 4 - Dean Kastner is 78 years old and lives by himself...Ch. 4 - Prob. 40PCh. 4 - Prob. 41PCh. 4 - Prob. 42PCh. 4 - Prob. 43PCh. 4 - Prob. 44PCh. 4 - Prob. 45PCh. 4 - Elroy, who is single, has taken over the care of...Ch. 4 - Prob. 47PCh. 4 - Prob. 48PCh. 4 - Prob. 49PCh. 4 - Prob. 50PCh. 4 - Prob. 51PCh. 4 - Prob. 52PCh. 4 - Prob. 53PCh. 4 - Marc and Michelle are married and earned salaries...Ch. 4 - Demarco and Janine Jackson have been married for...Ch. 4 - Prob. 56CPCh. 4 - Prob. 57CP
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