tax class

Feb 04, 2006 2 Replies
G

This is for an accounting class, i have to fill a couples taxes. They are using married and filing a joint return. there are two parts of this that i cannot figure out what line they would be on the 1040 form.



Okay



  1. In June of 2005, Mary's father died. Under a life insurance policy owned and paid for by her father. Mary was paid death benefits of

75,000.
  1. The key lime pie company provided carl with a company car to drive while he is working. The company spent 6,475 to maintain this vehicle during 2005. Carl never uses the car for personal purposes. I would really appricate someone's help. This taxes are very confusing to me. I am just starting these classes and i am trying to get used to every thing. Thanks for the help.


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"Girlfried" wrote

All of us here had to do the research. So look up whether or not life insurance proceeds (ie: the benefits) are taxable income or not.

And so you can say you did the research, I'll just point you to the correct stack in the "e" library.

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I'll give you this one because there are a lot of confusing factors here. If he didn't drive the vehicle to and from work (ie: commuting) then nothing goes toward his income. Just like the UPS driver, who doesn't drive the brown vans to and from work, but they use it in their job.

The dollars spent by the company is one of those misleading amounts. If there were personal use sufficient to track and report it, there are tables to use if the vehicle is leased by the company, or there are fixed daily amounts that get applied, and, any income to the employee is computed by the company and already entered on the employee's W-2.

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