Problem
1. Donald owns a car repair business. Hoodlums broke into his shop at night and stole his personal vehicle, which was there being repaired. His vehicle's FMV before being stolen was 25,000 and FMV after was zero. The cost to replace his vehicle was 19,000, which is the amount he received in insurance proceeds. Donald's AGI is $90,000. What deduction can Donald take on his 1040 due to the break-in?
2. A single taxpayer is trying to figure out their Adjusted Gross Income (AGI) for the year end 2022 tax year. Three facts are given. First, the taxpayer earns $100,000 in W-2 income from Starbucks. Second, the taxpayer owns a single member LLC business where they profited $25,000 in net income. Lastly, the taxpayer is a non-active investor in an S-corporation where her share of losses equaled -$25,000. What is the taxpayer's Adjusted Gross Income for 2022?
3. Jacques and Jo are a retired couple who receive $14,000 in Social Security benefits during the current year. They also receive $5,000 in interest on their savings account, $11,000 in interest from tax-exempt bonds they owned, and taxable pension payments of $25,000. What is their gross income?
4. Jeri purchased an annuity contract for $18,600 ($50/month for 15.5 years). The contract began paying Jeri and Christina monthly payments of $200 in June 2022, when Jeri turned 65 and Christina was 59. The contract will continue to pay monthly payments while Jeri and Christina are living. How much income should they report on their 2022 tax return related to the annuity payments?