14. Emily, who lives in Indiana, volunteered to travel toLouisiana in March to work on a home-building project for
Habitat for Humanity (a qualified charitable organization). She wasin Louisiana for three weeks. She normally
makes $500 per week as a carpenter’s assistant and plans to deduct$1,500 as a charitable contribution. In addition,
she incurred the following costs in connection with the trip: $600for transportation, $1,200 for lodging, and $400 for
meals. What is Emily’s deduction associated with this charitableactivity?
In 2018, Joanne invested $90,000 for a 20% interest in a limitedliability company (LLC) in which she is a material
participant. The LLC reported losses of $340,000 in 2018 and$180,000 in 2019. Joanne’s share of the LLC’s losses
was $68,000 in 2018 and $36,000 in 2019. How much of these lossescan Joanne deduct?
| a. $68,000 in 2018? $36,000 in 2019. |
| b. $68,000 in 2018? $22,000 in 2019. |
| c. $0 in 2018? $0 in 2019. |
| d. $68,000 in 2018? $0 in 2019. |
Rex and Dena are married and have two children, Michelle (age 7)and Nancy (age 5). During 2018, Rex earned a
salary of $24,500, received interest income of $300, and filed ajoint income tax return with Dena. Dena had $0 gross
income. Their earned income credit for the year is:
