Tax Example Questions look at the attachment TAX EXAMPLE CASE STUDY David Mitchell, age 47, is district vice president of a fast-food restaurant and is
Tax Example Questions look at the attachment TAX EXAMPLE CASE STUDY
David Mitchell, age 47, is district vice president of a fast-food restaurant and is an active participant in the
companys pension plan.
Nancy Mitchell, age 39, is the president and the majority stockholder of a temporary service employment
agency. She is an active participant in the companys retirement plan
Children
David Jr., age 15
Jessica, age 12
Mark, age 8
The Mitchells have assembled the following information for calculation of their tax liability.
TAX EXAMPLE CASE STUDY
Income
Davids salary: $115,000
Nancys salary: $131,100
interest income from a savings account: $438
short-term capital gains: $2,100
qualified dividend income: $1,884
Expenses
IRA contributions: $11,000
political campaign contributions: $750
state and local income taxes: $9,948
real estate taxes: $4,337
general sales tax: $899
sales tax on motor vehicle purchase: $1,225
home mortgage interest: $17,600
consumer interest: $2,374
charitable contributions: $3,902
tax return preparation fees: $450
investment adviser fees: $500
TAX EXAMPLE CASE STUDY
1. What is the Mitchells total (gross) income for tax purposes?
2. Identify the exclusions, deductions, and tax credits available to the
Mitchells.
3. What is the Mitchells adjusted gross income?
4. What is the Mitchells taxable income?
5. What is the Mitchells total tax due?
Purchase answer to see full
attachment
