Question

David is a college professor who does some consulting work on the side. He uses 25% of his home exclusively for the consulting practice. He is single and 63 years old. His AGI (without consideration of consulting income) is $45,000. Other information follows:

Income from consulting business	$4,000
Consulting expenses other than home office	1,500
Total costs relating to home:
Interest and taxes	6,500
Utilities	1,500
Maintenance and repairs	450
Depreciation (business part only)	1,500

Calculate David’s AGI. using current tax rules

Answer 1

Your Summary YOU MIGHT OWE: What you paid in taxes: What you should have paid in taxes: Tax credit you received this year: $0 $2,876 $2,876 BASED UPON YOUR ANSWERS WHAT YOU TOLD US About You Filing Status: Single Number of Dependents: Taxable income $25,550 Number of Disabled Dependents: $37,550 Your Income Adjusted Gross Income (AGI): Greater of itemized or Std. Deduction: $12,000 Total Wages: Federal Taxes Withheld: Qualified Business Income Deduction: State Income Tax Withheld: $0 Payments and Refundable Credits: Self Employed Income: -$7,450 Earned Income Credit: Spouse Self Employed Income: Additional Child Tax Credit: Unemployment Income: Other Income or Loss Not Listed Above: Refundable American Opportunity Credit: $45,000 Healthcare Premium Credit: Social Security Benefits: Federal Income Taxes Withheld: Nontaxable Combat Pay: Estimated Taxes: Interest Income Earned: Taxes and Nonrefundable Credits: $2,876 State or Local Income Tax Refund: Rent Royalty and Passive Income: Regular Tax $2,876 Ordinary Dividends: Alternative Minimum Tax: Qualified Dividends: Advance Premium Tax Credit - excess repayment: Held One Year or Less: Child Care Credit: Held More Than One Year: Credit for Other Dependents: Your Expenses

Your Expenses Taxes and Nonrefundable Credits: $2,876 Mortgage Interest: Charitable Donations: Nonrefundable American Opportunity Credit: Medical Expenses: Lifetime Learning Credit: Child Tax Credit: Premium Tax Credit: Shared Responsibility Payment: Other Credits: Child Care Expenses: Tax After Credits: $2,876 Student Loan Interest: Self-Employment Tax: Undergraduate Degree Expense: Medicare SurTax: Federal Quarterly Taxes Paid: Net Investment Tax: Shared Responsibility Payment: Other Deductions, Adjustments and Credits: Repayment of Homebuyer Credit: Sales Taxes: Other State Or Local Taxes: Real Estate Tax: