54. Under the alimony recapture rules, what amounts are designated
for recapture reclassification, and what are the tax consequences?
55. Indicate whether each of the following items is considered a for
AGI, (above-the line) deduction for the 2009 tax year.
Chapter 5, complete problem 54, problem 61, and problem 62
54. Steve purchased a personal residence from Adam. To sell the
residence, Adam agreed to pay $4,500 in points related to Steve’s
mortgage. Discuss the tax consequences from the perspective of both
Steve and Adam.
61. Reynaldo and Sonya, a married couple, had flood damage in their
home due to a faulty water heater during 2009, which ruined the
furniture in their garage. The following items were completely
destroyed and not salvageable
Their homeowner’s insurance policy had a $10,000 deductible for the
personal property, which was deducted from their insurance
reimbursement of $12,700, resulting in a net payment of $2,800. Their
AGI for 2009 was $30,000. What is the amount of casualty loss that
Reynaldo and Sonya can claim on their joint return for 2009?
62. During the year 2009, Ricki, who is not self-employed and does not
receive employer reimbursement for business expenses, drove her car
5,000 miles to visit clients, 10,000 miles to get to her office, and 500
miles to attend business-related seminars. She spent $300 for airfare to
another business seminar and $200 for parking at her office. Using
the car expense rate of 55 cents per mile, what is her deductible
transportation expense?