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Which of the Following Taxpayers May File as a Head

question 99

Multiple Choice

Which of the following taxpayers may file as a head of household in 2012? Ron provides all the support for his mother, Betty, who lives by herself in an apartment in Fort Lauderdale.Ron pays the rent and other expenses for the apartment and properly claims his mother as a dependent.
Tammy provides over one-half the support for her 18-year old brother, Dan.Dan earned $4,200 in 2012 working at a fast food restaurant and is saving his money to attend college in 2013.Dan lives in Tammy's home.
Joe's wife left him late in December of 2011.No legal action was taken and Joe has not heard from her in 2012.Joe supported his 6-year-old son, who lived with him throughout 2012.


Definitions:

Operating Lease

A lease agreement allowing the lessee to use an asset for a shorter period than the asset's useful life without ownership rights.

Implicit Interest Rate

The interest rate that equates the present value of lease payments to the fair value of the leased asset, often used in lease agreements.

Capital Lease

A lease agreement that is considered a purchase by the lessee because of its terms, such as a bargain purchase option, which allow for the transfer of ownership over the asset's life.

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