Tracy paid the following taxes this year: Federal income tax…

Tracy paid the following taxes this year: Federal income tax $12,034 Employee payroll tax (FICA and Medicare) $4,590 State income tax $5,725 State and local sales tax $2,998 Local property tax on personal residence $3,300 What is Tracy’s itemized deduction for taxes?

Mr. and Mrs. Darwin sold their principal residence on Septem…

Mr. and Mrs. Darwin sold their principal residence on September 12, 2019, and purchased and moved into a new residence three weeks later. They excluded their $353,000 gain realized on this sale from gross income. On October 2, 2020, the Darwins realized a gain on sale of the new residence. Which of the following statements about this second gain is true?

Tina has a marginal income tax rate = 22%. She sold four inv…

Tina has a marginal income tax rate = 22%. She sold four investment assets resulting in the following capital gains and losses: Short-term gain = $3,800, Short-term loss = $(5,000) Long-term gain = $39,000,  Long-term loss = $(35,100) How much net capital gain is taxed at a preferential rate?