Amrit has over 20 years of experience and earns £95,000 in wages in the 2020/2021 tax year. Over the years, he has invested his extra savings in buying shares in various firms. In this calendar year, he is expected to receive a total dividend of £7,500. Out of the total dividends, £1,500 are from ISAs. In July 2020, Amrit sadly loses his mother to Covid-19. Amrit's mother left a will which states that £50,000 of her estate should be bequeathed to Cancer Research UK, a charitable institution, with the remainder of her wealth to be bequeathed to Amrit. Moreover, Amrit's mum had £75,000 as ISA and £350,000 in her current account Question Please calculate the tax paid by Amrit. (Explain all the steps and assumptions(rules) in your calculations)

Amrit has over 20 years of experience and earns £95,000 in wages in the 2020/2021 tax year. Over the years, he has invested his extra savings in buying shares in various firms. In this calendar year, he is expected to receive a total dividend of £7,500. Out of the total dividends, £1,500 are from ISAs. In July 2020, Amrit sadly loses his mother to Covid-19. Amrit's mother left a will which states that £50,000 of her estate should be bequeathed to Cancer Research UK, a charitable institution, with the remainder of her wealth to be bequeathed to Amrit. Moreover, Amrit's mum had £75,000 as ISA and £350,000 in her current account Question Please calculate the tax paid by Amrit. (Explain all the steps and assumptions(rules) in your calculations)

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 95TPC

See similar textbooks

Similar questions

Jack paid $5,000 in daycare expenses in 2022 for his five-year-old daughter so he could work. His AGI for the year was $37,500 (all earned income). What is the amount of his child and dependent care credit? Jack meets the love of his life, Jill, and they quickly marry. Jill’s earned income mirrors Jack’s at $37,500, so in 2022, Jack quits working and stays home to play video games. If Jack and Jill are MFJ with AGI of $37,500 in 2022, and Jack’s daughter continues to incur $5,000 in dependent care expenses, how much will their dependent care credit be? Show your work, or explain your answer.
In 2020, Jack and Eri are married. Jack earns $150,000 from his job as a finance executive. Eri earns $25,000 per year as a part-time florist. They have two children, Harry and Gon, ages 2 and 5. Jack's great aunt Jean gave him a check for $17,000 during the year because he is her favorite nephew. Also, Jack's job reimbursed him $5,000 for childcare for his two sons. Eri owns a 20% interest in Flowers to Go (a partnership). The partnership earned $75,000 in operating income during the year, it also paid a cash distribution of $15,000 to Eri during the year. Jack and Eri have a joint checking account that earned interest of $165 for the year. Jack also own City of Mexico bonds which paid interest of $1,000. They also have the following expenses during the year: · Medical Expenses: $22,000 · State & Local Taxes: $11,500 · Federal Income Tax Payments: $10,000 · Cash Charitable Contributions: $3,000 The standard deduction amounts for 2021 are listed below: · Single: $12,550 · Head…
Daniel is a physiotherapist who works at Murdoch Hospital. Daniel earns $98,000 per annum from his job and has a tax credit of $18,000. Daniel's physio membership and insurance costs him 55,000 per annum, Daniel is single and has no kids. On 1 April 2023 after discussion with his accountant Daniel rushed to get private health insurance as he was advised that he will get a tax benefit from having private health insurance. Daniels HECS debt was $35,000. Calculate Daniels net tax payable or refund as at 30 June 2023. Show all workings.Answer space for Question 1:
In 2020, Emily and Mark are married. Emily earns $150,000 from her job as a finance executive. Mark earns $25,000 per year as a part-time florist. They have two children, Peter and Sam, ages 2 and 5. Emily’s great aunt Joan gave her a check for $17,000 during the year because she is her favorite niece. Also, Emily’s job reimbursed him $5,000 for childcare for his two sons.Mark owns a 20% interest in Flowers to Go (a partnership). The partnership earned $75,000 in operating income during the year, it also paid a cash distribution of $15,000 to Mark during the year.Emily and Mark have a joint checking account that earned interest of $165 for the year. Emily also own City of Scranton bonds which paid interest of $1,000.They also have the following expenses during the year:· Medical Expenses: $22,000· State & Local Taxes: $11,500· Federal Income Tax Payments: $10,000· Cash Charitable Contributions: $3,000The standard deduction amounts for 2021 are listed below:· Single: $12,550· Head…
John graduates from college at the age of 25. He places $5,000 in a 401k at the beginning of year one, $8,000 at the beginning of year two, $11,000 at the beginning of year three, $14,000 at the beginning of year four, andthen $15,000 per year until he retires at the age of 60. If money earns 8 percent per year, how much will John have in his retirement account at age 60?
In 2020, JungKook earns RM 12,000 monthly. He has four children, and his wife is a housewife. He contributes 11% monthly to EPF from his gross salary and RM150 monthly for his life insurance, He paid RM200 monthly for his medical. He bought a new laptop for RM4000 for one of his children. His eldest child is studying in a university, his second child is handicapped in secondary school, his third child is in primary and his youngest is in kindergarten. Calculate his tax payable for the assessment year 2021.
Rose works as a quality in-charge in an equipment manufacturing firm in the UK. During the tax year 2019/20, she has earned income from different sources. She earned £88,800 through employment income. She is also doing a business through which she earned a taxable income of £16,000. She invested £82,000 in equity and earned £10,800 dividend income. In the year 2018, she made investment in business society and received £4,600 interest during this tax year. She also invested ISA and received interest income of £24,000. She has a taxable rental income of £4,000 from properties. Situation 1 You are required to calculate Rose’s income tax liability for the year 2019/20. Situation 2 Assume Rose has paid £4,000 towards a gift aid donation during the year 2019/10, re-assess her tax liability.
Sam is self-employed and prepares accounts annually to 5 April. At 6 April 2022, the written down value brought forward in the main pool was £26, 000. During the year to 5 April 2023, he purchased a car with emissions of 45 g/km for £19, 200 and another car with emissions of 104 g/km for £25, 600. What are the maximum capital allowances that Sam can claim for the year to 5 April 2023? Question 6Answer a. £12, 744 b. £25, 416 c. £9, 672 d. £28, 488
John, a single father, has AGI of $83,000 in 2021. During the year, he pays $4,000 in qualified tuition for his dependent son, who just started attending Small University. What is John’s American Opportunity tax credit for 2021? $0 $1,750 $2,250 $2,500 $4,000
Ramit has contributed $10,000 to his Roth IRA during the last 5 years. The current balanceis $12,000. Ramit wants to withdraw $5,000 from his Roth IRA account so that he can travelto Europe this summer. If he does this, how much will he owe in taxes and penalties on thisdistribution if he is in the 25% tax bracket?
Gordon is a health care assistant living in Belfast, earning £20,000 a year after deductions for tax, National Insurance and pension contributions. He is about to move into a flat with his boyfriend Dale, who has a 15-year-old child, Isla. Dale is a chef and earns £18,500 a year after tax and National Insurance. He also receives £21.15 a week in child benefit. No-one described above has any other source of income 2.1b, comment on how their individual living standards have changed compared to when they were living separately.
George is 29 years old and has a highly paid job in the City. He is an additional rate taxpayer and he would like to be more tax efficient with his investments. His gross total income is currently £190,000 p.a. He contributes £15,000 p.a. to a pension through his employer pension scheme and to a Stocks and Shares ISA another £1,000 per month. His expenses are £3,000 per month and he would like to invest most of his disposable income. He would like to put just £1,000 per month in his deposit account against his emergency funds. Please calculate what is George’s net salary and recommend what options he has to invest his money in a tax efficient way? His Attitude to Risk is High and he is a long-term investor.