Deduction of Taxes. Joyce is a single, cash-method taxpayer. On April 11, 2014, Joyce paid
$120 in state income taxes with her 2013 state income tax return. During 2014, Joyce had
$1,600 in state income taxes withheld. On April 13, 2015, Joyce paid $200 with her 2014
state tax return. During 2015, she had $2,100 in state income taxes withheld from her pay-
check. Upon filing her 2015 tax return on April 15, 2016, she received a refund of $450 for
excess state income taxes withheld. Joyce had total AGI in 2015 and 2016 of $51,000 and
$53,500, respectively. In 2015, Joyce also paid $5,500 in qualified residence interest.
A What is the amount of state income taxes Joyce may include as an itemized deduction
for 2014?
B. What is Joyce’s allowed itemized deduction for state income taxes for 2015?
C. What is Joyce’s taxable income for 2015?
D. What is her AGI for 2016?

Nell and kirby are in the process of negotiating their divorce agreement. what should be the tax consequences to nell and kirby if the following, considered individually, became part of the agreement? a. in consideration for her one-half interest in their personal residence, kirby will transfer to nell stock with a value of $200,000 and $50,000 of cash. kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. they purchased the residence three years ago for $300,000.nell's basis for the stock is $ xkirby's basis in the house is $ xb. nell will receive $1,000 per month for 120 months. if she dies before receiving all 120 payments, the remaining payments will be made to her estate.the payments (qualify, do not qualify) as alimony and are (included in, excluded from) nell's gross income as they are received.c. nell is to have custody of their 12-year-old son, bobby. she is to receive $1,200 per month until bobby (1) dies or (2) attains age 21 (whichever occurs first). after either of these events occurs, nell will receive only $300 per month for the remainder of her life.$ x per month is alimony that is (included in, excluded from) nell's gross income, and the remaining $ x per month is considered (child support, property settlement) and is (nontaxable, taxable) to nell.