BUS 4065 Unit 2 Assignment 2 Adjusted Gross Income

4.45

What are some limitations concerning the deductibility of student loan interest?

Regarding the deductibility of student loan interest, several specific limitations exist. First, the taxpayer’s marital status plays a role. To qualify for the deduction, the taxpayer must file as single or married, filing jointly; filing as married but living separately disqualifies them from claiming the deduction.

Another important limitation is that the individual claiming the deduction must be legally obligated to repay the student loan. If someone else, such as a parent, is making the loan payments on behalf of the taxpayer, the taxpayer cannot claim the deduction.

BUS 4065 Unit 2 Assignment 2 Adjusted Gross Income

There is also a cap on the deductible amount of student loan interest. Currently, the maximum deduction allowed is $2,500. However, this limit can be further reduced based on the taxpayer’s modified adjusted gross income (MAGI). As the MAGI increases, the deductible amount gradually decreases until it reaches a certain income threshold, beyond which the deduction is no longer available.

4.47

How much student loan interest can Tam and her spouse deduct in 2021?

In the case of Tam and her spouse, they can deduct $800 of student loan interest on their 2021 tax return. To calculate this deduction, we start with the total education expenses incurred during Tam’s college years, which amount to $10,000. Out of this total, $2,000 was covered by scholarships, leaving $8,000 as the remaining eligible expenses.

The deductible percentage is determined by dividing the eligible expenses ($8,000) by the total costs ($10,000), resulting in 80%. Tam incurred $600 of interest on her federal loans and $400 on a loan from a local lending institution, totaling $1,000. Multiplying this amount by the deductible percentage (80%) gives us the deductible interest of $800.

4.50

How much moving expense deduction, can Reginald take on his 2021 tax return?

Reginald can take a moving expense deduction of $890 on his 2021 tax return. When Reginald relocated to Pensacola, Florida, for his new duty station, he incurred various costs associated with the move.

BUS 4065 Unit 2 Assignment 2 Adjusted Gross Income

The deductible moving expenses include $450 for gasoline, $250 for renting a truck, $100 for a tow trailer, $85 for food, $25 for double espressos from Starbucks, $300 for motel lodging on the way to Pensacola, $405 for a previous plane trip to search for an apartment, and $175 for temporary storage of his sports memorabilia. These expenses amount to a total of $1,790.

However, Reginald received a reimbursement of $900 from the government for his moving expenses. To calculate the deductible amount, we subtract the rebate ($900) from the total costs ($1,790), resulting in a moving expense deduction of $890.

4.53

How should Sebastian handle the $167 reported on the 1099-INT form on his 2021 tax return?

Sebastian should include the $167 reported on the 1099-INT form as interest income on his 2021 tax return. Sebastian’s financial institution provides the 1099-INT record and reports the interest he earned throughout the year.

The $167 represents taxable interest income that must be reported to the IRS. Even though it may seem like a relatively small amount, it is essential to accurately say all sources of income to ensure compliance with tax regulations.

4.55

Regarding Ahmed and Farah’s divorce decree, what are the tax implications?

1. a) According to the divorce decree executed on May 1, 2018, Ahmed is

 She must make alimony payments of $3,000 per month to Farah. Since the decree was signed before December 31, 2018, any alimony payments made to Farah are considered taxable income for her. Therefore, on her tax return, Farah can claim the full $3,000 monthly as taxable alimony income.

BUS 4065 Unit 2 Assignment 2 Adjusted Gross Income

1. b) Ahmed transferred a house worth $650,000 to Farah as part of the divorce settlement. The tax basis of the place, which represents its original cost for tax purposes, is $300,000 for Ahmed.

In this situation, there is no taxable gain or loss that Farah must recognize upon receiving the house. The property transfer is part of the property settlement outlined in the divorce decree executed in 2018. As a result, it falls under the tax rules governing property settlements in divorces, which generally do not trigger immediate taxable consequences for the receiving spouse (Farah) or the transferring spouse (Ahmed).

ADDITIONAL INSTRUCTIONS FOR THE CLASS

SCORE A+ WITH HELP FROM OUR PROFESSIONAL WRITERS – BUS 4065 Unit 2 Assignment 2 Adjusted Gross Income

We will process your orders through multiple stages and checks to ensure that what we are delivering to you, in the end, is something that is precise as you envisioned it. All of our essay writing service products are 100% original, ensuring that there is no plagiarism in them. The sources are well-researched and cited so it is interesting. Our goal is to help as many students as possible with their assignments, i.e. our prices are affordable and services premium.

• Discussion Questions (DQ)

Initial responses to the DQ should address all components of the questions asked, including a minimum of one scholarly source, and be at least 250 words. Successful responses are substantive (i.e., add something new to the discussion, engage others in the discussion, well-developed idea) and include at least one scholarly source. One or two-sentence responses, simple statements of agreement or “good post,” and responses that are off-topic will not count as substantive. Substantive responses should be at least 150 words. I encourage you to incorporate the readings from the week (as applicable) into your responses.

• Weekly Participation

Your initial responses to the mandatory DQ do not count toward participation and are graded separately. In addition to the DQ responses, you must post at least one reply to peers (or me) on three separate days, for a total of three replies. Participation posts do not require a scholarly source/citation (unless you cite someone else’s work). Part of your weekly participation includes viewing the weekly announcement and attesting to watching it in the comments. These announcements are made to ensure you understand everything that is due during the week. BUS 4065 Unit 2 Assignment 2 Adjusted Gross Income

• APA Format and Writing Quality

Familiarize yourself with the APA format and practice using it correctly. It is used for most writing assignments for your degree. Visit the Writing Center in the Student Success Center, under the Resources tab in Loud-cloud for APA paper templates, citation examples, tips, etc. Points will be deducted for poor use of APA format or absence of APA format (if required). Cite all sources of information! When in doubt, cite the source. Paraphrasing also requires a citation. I highly recommend using the APA Publication Manual, 6th edition.

• Use of Direct Quotes

I discourage over-utilization of direct quotes in DQs and assignments at the Master’s level and deduct points accordingly. As Masters’ level students, it is important that you be able to critically analyze and interpret information from journal articles and other resources. Simply restating someone else’s words does not demonstrate an understanding of the content or critical analysis of the content. It is best to paraphrase content and cite your source.

• LopesWrite Policy

For assignments that need to be submitted to Lopes Write, please be sure you have received your report and Similarity Index (SI) percentage BEFORE you do a “final submit” to me. Once you have received your report, please review it. This report will show you grammatical, punctuation, and spelling errors that can easily be fixed. Take the extra few minutes to review instead of getting counted off for these mistakes. Review your similarities. Did you forget to cite something? Did you not paraphrase well enough? Is your paper made up of someone else’s thoughts more than your own? Visit the Writing Center in the Student Success Center, under the Resources tab in Loud-cloud for tips on improving your paper and SI score.

• Late Policy

The university’s policy on late assignments is a 10% penalty PER DAY LATE. This also applies to late DQ replies. Please communicate with me if you anticipate having to submit an assignment late. I am happy to be flexible, with advance notice. We may be able to work out an extension based on extenuating circumstances. If you do not communicate with me before submitting an assignment late, the GCU late policy will be in effect. I do not accept assignments that are two or more weeks late unless we have worked out an extension. As per policy, no assignments are accepted after the last day of class. Any assignment submitted after midnight on the last day of class will not be accepted for grading.

• Communication

Communication is so very important. There are multiple ways to communicate with me: Questions to Instructor Forum: This is a great place to ask course content or assignment questions. If you have a question, there is a good chance one of your peers does as well. This is a public forum for the class. Individual Forum: This is a private forum to ask me questions or send me messages. This will be checked at least once every 24 hours.

• Guarantee

• Zero Plagiarism
• On-time delivery
• A-Grade Papers
• Free Revision
• 24/7 Support
• 100% Confidentiality
• Professional Writers

• Services Offered

• Custom paper writing
• Question and answers
• Essay paper writing
• Editing and proofreading
• Plagiarism removal services
• Multiple answer questions

We will process your orders through multiple stages and checks to ensure that what we are delivering to you, in the end, is something that is precise as you envisioned it. All of our essay writing service products are 100% original, ensuring that there is no plagiarism in them. The sources are well-researched and cited so it is interesting. Our goal is to help as many students as possible with their assignments, i.e. our prices are affordable and services premium.

Looking for a Similar Assignment? Order a custom-written, affordable, plagiarism-free paper