Compute the Wilsons’ moving expense deduction. Where is this amount reported on their return?
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Trey Wilson accepted a new job at Macy's in Baltimore, Maryland, which is 787 miles from his old home. In April he flew out to Baltimore to start his new job. His wife, Veronica remained at their old home so that the children could finish out the school year. In July, the Wilsons paid a moving company $6,200 to move their belongings to Baltimore. Veronica then drove the family out to their new home. Trey’s airfare to Baltimore was $450. Veronica paid $151 for gas, $260 for lodging, and $110 for meals while en-route to Baltimore. Trey’s employer reimbursed him $5,000 for the cost of the moving company.
- Compute the Wilsons’ moving expense deduction.
- Where is this amount reported on their return?
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- Hassad owns a rental house on Lake Tahoe. He uses a real estate firm to screen prospective renters, but he makes the final decision on all rentals. He also is responsible for setting the weekly rental price of the house. During the current year, the house rents for 1,500 per week. Hassad pays a commission of 150 and a cleaning fee of 75 for each week the property is rented. During the current year, he incurs the following additional expenses related to the property: a. What is the proper tax treatment if Hassad rents the house for only 1 week (7 days) and uses it 50 days for personal purposes? b. What is the proper tax treatment if Hassad rents the house for 8 weeks (56 days) and uses it 44 days for personal purposes? c. What is the proper tax treatment if Hassad rents the house for 25 weeks (175 days) and uses it 15 days for personal purposes?Mary's job position is being transferred to Lexington, Kentucky from Orlando, Florida. She andher husband George are currently renting their home in Orlando, but they have decided that they want to purchase a home in Lexington. Mary's annual salary is $48,500. George has also beenable to find employment in Lexington at a factory making $39,000 per year. Mary is a planner and has saved $6200 that she can use towards the down payment on the new house. Use the above information to answer the following questions. Round all answers to 2 decimal places. 1. To save the down payment, Mary deposited monthly in a savings account earning 2.5% compounded monthly. If it took Mary 5 years to save up the down payment,how much money was Mary depositing each month? 2. If Mary and George don't want to spend more than 15% of theirmonthly income on their house payment, what is the maximum monthly payment they can afford?On September 1st, 2018, Mr. Payton moves from Sudbury to Ottawa (Ottawa is 484 kilometers from Sudbury) for a new job. He lived in a rented apartment in Sudbury and purchased a house in Ottawa. The total cost of the actual move, including the costs of moving his personal possessions, was $16,500. He paid $500 to the cleaners to clean the rented home and hand it over to the landlord as per his tenancy contract. He spent $750 on a house hunting trip to Ottawa, but he did not decide on a house until his return to Sudbury. He also incurred a $2,000 penalty for breaking his lease in Sudbury. He also incurred $150 of mail forwarding cost to his new address. He also paid $200 expenses for various utilities connections at his new address in Ottawa. During the year, his salary totaled $60,000, of which $45,000 was earned in Sudbury and the remaining $15,000 was earned in Ottawa. As Payton is hired at a junior level, his new employer is not reimbursing any of the moving expenses.…
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- Pam is separated from her husband, Ted. Ted moved to an apartment in the same city two years ago, but they have not finalized their divorce yet. They live in a common law state. They have one daughter, Rainey, who is eight years old and lives with Pam most of the time. She spends every other weekend and usually one week night with her father. Ted works for XYZ International. He earned a salary of $96,000 for the current year. His salary was his only source of income. Pam works for ABC Corp. as an accountant. Her salary for the current year was $88,000. ABC is a great place to work. Pam’s health insurance (valued at $4,800 per year) and $6,000 in childcare benefits are provided by ABC Corp. She even received a Christmas bonus of $2,500 in addition to her salary. She held on to the check until January when she cashed it to use on a ski vacation for her and Rainey. Pam slipped and fell at work. She had to undergo surgery on her ankle. She received worker’s compensation benefits…Igor was killed in action while serving in Iraq. His duty station at the time he was deployed was Fort Benning, Georgia, where he and his wife, Hailey, had lived for the previous three years. In September 2022, Hailey chose to move back to Waterloo, lowa, where they lived at the time Igor enlisted. The cost to move their household goods was $4,800; Hailey drove 1,050 miles and spent $300 for two nights of lodging. Hailey received $5,810 of reimbursement from the military. The taxable amount of Hailey's reimbursement is $300 $479 $521X $5,331
