I have the given assignment that I want assistance completing:
Maximizing the Tuition Deduction:
Blake maintain a household that include his daughter bianca who is 23 years old and a full time student. using funds from a savings account she inherited from her aunt, Bianca pays for her $5000 college tuition. For the year, Blake properly claims Bianca as a dependent (under the qualifying child category) and, making use of 222, deducts $4,000 of the tuition. On her own income tax return, Bianca also use 222 to deduct the 1,000 balance of the 5,000 tuition.
- Explain what Blake and Bianca might be trying to accomplish.
- Determine whether or not they have acted properly. Discuss any ethical concerns related to this treatment.
Ethics and Equity: Whose Office Is It?
Gene and Mary are married, and both work at home. Gene is self-employed, while mary is employed. They have set aside 20 percent of the living area of their residence for an office that they both use. On a joint return for the year, the full office in the home expenses are deducted on Gene's schedule C (profit or loss from business), while Mary's form 2106 (employee business expenses) contains no such deduction.
- Discuss what Gene and Mary might be trying to accomplish.
- Evaluate if Gene and Mary acted properly.