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    Tax Liability, AGI, and Capital Transactions

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    1- Emma had the following transactions for 2012:
    Salary $80,000
    Alimony received 4,000
    Recovery from car accident --
    Personal injury damages $40,000
    Punitive damage 70,000 110,000
    Gift from parents 20,000
    Property sales --
    Loss sale of boat (used for pleasure and owned 4 years) ($ 4,000)
    Gain on sale of ADM stock(held for 10 month as an investment) 4,000 (-0-)

    What is Emma's AGI for 2012?

    2- During 2012, Addison has the following gains and losses:

    LTCG $10,000
    LTCL 3,000
    STCG 2,000
    STCG 7,000

    A) How much is Addison's tax liability if she is in the 15% tax bracket?
    B) If her tax bracket is 33% (not 15%)?

    3 - During 2012, Madison has salary income of $80,000 and the following capital transactions:
    LTCG $13,000
    LTCL 15,000
    STCG 13,000
    STCG 6,000

    How are these transactions handled for income tax purposes?

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    https://brainmass.com/business/accounting/tax-liability-agi-and-capital-transactions-509748

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    1- Emma had the following transactions for 2012:
    Salary $80,000
    Alimony received 4,000
    Recovery from car accident --
    Personal injury damages $40,000
    Punitive damage 70,000 110,000
    Gift from parents ...

    Solution Summary

    This solution calculates Emma's AGI for 2012. Addison's tax liability in various tax brackets is also calculated, and Madison's transactions for income tax purposes is also thoroughly explained.

    $2.19

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