During 2016, Kent, a 40-year-old single taxpayer, reports the following items of income and expense: Income: Salary.......................................................................$150,000

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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?

Corporation
A 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...
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Federal Taxation 2017 Comprehensive

ISBN: 9780134421438

30th Edition

Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson

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