Solution-
Firstly, you need to Categorize the income and itemized deductions to calculate the taxable income, also need to calculate Net rental income (loss)-
Income- | ||
Salary | 150,000 | |
Dividends | 800 | |
Interest Income | 1,500 | |
Net rental income (loss) | 1,600 | |
Loss on sale of stock | - 2,000 | |
Alimony | - 10,000 | |
Adjusted Gross Income (AGI) | 141,900 | |
Less: Itemized Deductions | ||
Medical | - | Medical expenses over 7.5% of AGI are deductible (age <65) |
Real property taxes on the principle res. | 4,300 | |
Charitable contributions | 4,000 | |
interest on the principle residence | 7,000 | |
Casualty Loss | - | Non deductible |
Misc. Itemized Deductions | - | Non deductible |
Total deductions | 15,300 | |
Taxable income before Standard deduction | 126,600 | |
Standard deduction | 12,000 | |
Taxable income | 114,600 |
1:6-34 For vs. From AGI. During 2019, Kent, a 40-year-old single taxpayer, reports the follow- ing...
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John and Sandy Ferguson got married elght years ago and have a seven-year-old daughter, Samantha. In 2019, John worked as a computer technician at a local university earning a salary of $152,000, and Sandy worked part-time as a receptionist for a law firm earning a salary of $29,000. John also does some Web design work on the side and reported revenues of $4,000 and associated expenses of $750. The Fergusons recelved $800 In qualified dividends and a $200 refund of...
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