Tim and Theresa, a married couple, receive adoption assistance payments of $10,000 from their employer's qualified plan. They had spent $5,000 in connection with the adoption of a special-needs child. If their modified AGI is $175,000 how much may be excluded from income?
A) $0
B) $5,000
C) $10,000
D) $13,360
Answer: C
Tax
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- Income in respect of a cash-basis decedent
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- In July 1996, Dan Farley leased a building to Robert Shelter for a period of fifteen years at a monthly rental of $1,000 with no option to renew. At that time the building had a remaining estimated useful life of twenty years. Prior to taking possession of the building, shelter made improvements at a cost of $18,000. These improvements had an estimated useful life of twenty years at the commencement of the lease period. The lease expired on June 30, 2015, at which point the improvement had a fair market value of $2,000. The amount that Farley, the landlord, should include in his gross income for 2015 is
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