During 2019, Kent, a 40-year-old single taxpayer, reports the following items of income and expense: Salary $150,000
Question:
During 2019, Kent, a 40-year-old single taxpayer, reports the following items of income and expense:
Salary | $150,000 |
Dividends from Alta Corporation | 800 |
Indterest income from a savings account | 1,500 |
Rental income from a small apartment he own | 8,000 |
Expense: | |
Medical | 6,000 |
Interset on a principal residence | 7,000 |
Real property taxes on the principal residence | 4,300 |
Charitable contributions | 4,000 |
Loss from the sale of Delta Corporation stock (held for two years) | 2,000 |
Expense incurred on the rental apartment: | |
Maintence | 500 |
Property taxes | 1,000 |
Utilities | 2,400 |
Depreciation | 1,700 |
Insurance | 800 |
Alimony payments to former wife (divorced July 21, 2018) | 10,000 |
The amounts above 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...
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Federal Taxation 2020 Comprehensive
ISBN: 9780135196274
33rd Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson, David S. Hulse