ACC 401 Week 2 DQ1 Adjusted Gross Income

Adjusted Gross Income. From Chapter 4, complete problem 43, problem 48, and problem 52.

1. What are some of the limitations concerning deductibility of student loan interest? Be specific and comprehensive.

2. In May 2010, Maria graduated from the University of San Diego with a degree in accounting and moved to Denver to look for work. Shortly after arriving in Denver, she obtained work as a staff accountant in a local CPA firm. In her move to Denver, Maria incurred the following costs:

$450 in gasoline.

$250 for renting a truck from UPAYME rentals.

$100 for a tow trailer for her car.

$85 in food.

$35 in double lattes from Starbucks.

$300 for motel lodging on the way to Denver.

$350 for a previous plane trip to Denver to look for an apartment.

$175 in temporary storage costs for her collection of antique bassoons.

How much, if any, may Maria take as a moving expense deduction on her 2010 tax return? Is that deduction subject to any conditions that could change its deductibility in the future?

1. Three types of payments are associated with a decree of separation or a divorce

a. What are those three payments?

b. Which one has a tax consequence?

c. What is the timing rule regarding the recapture period of those payments?