During 2016, Kent, a 40-year-old single taxpayer, reports the following items of income and expense: Income: Salary.......................................................................$150,000
Question:
During 2016, Kent, a 40-year-old single taxpayer, reports the following items of income and expense:
Income:
Salary.......................................................................$150,000
Dividends from Alta Corporation.............................................800
Interest income from a savings account....................................1,500
Rental income from a small apartment he owns..........................8,000
Expenses:
Medical.........................................................................6,000
Interest on a principal residence.............................................7,000
Real property taxes on the principal residence............................4,300
Charitable contributions......................................................4,000
Casualty loss-personal.......................................................6,100
Miscellaneous itemized deductions..........................................1,200
Loss from the sale of Delta Corporation stock (held for two years) ...2,000
Expenses incurred on the rental apartment:
Maintenance.....................................................................500
Property taxes.................................................................1,000
Utilities........................................................................2,400
Depreciation..................................................................1,700
Insurance........................................................................800
Alimony payments to former wife.......................................10,000
Assuming all of these items are deductible and that the amounts are before any limitations, what is Kent's taxable income for the year?
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Federal Taxation 2017 Comprehensive
ISBN: 9780134421438
30th Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson