Amy is single. During 2024, she determined her adjusted gross income was $12,000. During the year, Amy also contributed $1,500 to a Roth IRA. What is the maximum saver’s credit she may claim for the year?

SHORT PROBLEM QUESTIONS (35 points in total) For each of the following questions, give a direct numerical answer along with showing your work to your calculations.  Remember that the supporting calculations are more important than the direct answer.  Answers without support will result in point reductions. You are not required to submit a file to Question 29. However, you may use this question to upload a document (e.g., Excel file) supporting your answers to Questions 26 through 28. 

Which of the following is not usually included in an asset’s initial tax basis?

Which of the following tax entities are subject to the federal income tax at the entity level?

MULTIPLE CHOICE  (75 Points; 3 points each)

In 2024, Sasha and Peter entered into a §1031 like-kind exchange. Sasha exchanged an apartment building in Washington for Peter’s apartment building in Oregon. Sasha’s apartment building had a fair market value of $650,000 and an adjusted basis of $400,000. Peter’s building has a fair market value of $500,000 and an adjusted basis of $200,000. Peter also paid Sasha $150,000 in cash as part of the exchange. Calculate Sasha’s realized gain or loss. Calculate Sasha’s recognized gain or loss. Calculate Sasha’s basis for the land received Show all your work. 

Karin and Chad (ages 30 and 31, respectively) are married and together have $110,000 of AGI. This year they have recorded the following expenses: Home mortgage interest $20,000 Real estate taxes 5,500 State income taxes paid 6,500 Medical expenses 1,800 Employee business expenses 450 Cash charitable contributions  800 Calculate Karin and Chad’s total deductible itemized deductions.

Riverside LLC purchased and placed in service the following assets in 2024: PIS Date Asset Cost 2/26/2024 Computers $1,000,000 6/12/2024 Gen. Manufacturing Equipment $2,500,000 Riverside LLC purchased no other assets during 2024, and its net income for the year is $50,000,000 before considering cost recovery deductions. What is the maximum tax depreciation deduction Riverside LLC may take in 2024, assuming the company elects §179 expense and bonus depreciation?  Link to class life and depreciation tables: Link Show all your work.  

Which of the following would is a failure of the horizontal equity concept?

In general, under which of the following scenarios would a contribution to Roth IRA yield a higher after-tax account balance in retirement compared to a traditional IRA?