Problem 6-37 Community Property (LO 6.11) Cindy and Paul are married and live to
ID: 2522089 • Letter: P
Question
Problem 6-37 Community Property (LO 6.11) Cindy and Paul are married and live together in Arizona. During the year, Paul receives a salary of $45,000 and $4,000 of dividends from stock that is his separate property. Cindy receives a salary of $27,000. Cindy and Paul receive $1,500 in interest income from a savings account that was established with community funds. a..f Cindy and Paul file separate income tax returns, what amount of income must each report? Paul Cindy b. _If Cindy and Paul lived in Louisiana instead of Arizona, what amount of income would each report on separate income tax returns? Paul cindyExplanation / Answer
Ans.
a. Paul - $50500 ( Salary + dividend + interest to be clubbed in his hands because his income is higher)
Cindy - $ 27000 (Salary)
b. Paul - $ 5500 (Only dividend & Interest because salary will be taxable in Arizona)
Cindy - $ 0 ( Salary taxable in arizona)