Question
5. Matthew, age 66 and head of household filling status, earned $80,000 gross income from his sole owner LLC (qualified trade of business taxes as
5. Matthew, age 66 and head of household filling status, earned $80,000 gross income from his sole owner LLC (qualified trade of business taxes as a sole proprietorship), paid self-employment tax of $11,304 and paid self-employment healthcare premiums of $5,000. Matthew also had a $10,000 short-term capital gain, a $20,000 long-term capital loss, and paid $4,000 investment interest expense. Assuming Matthew's personal payments included $3,000 cash contributed to a public charity, $8,000 state taxes, $1,000 auto loan interest, and $9,000 home interest on $300,000 of acquisition debt for the current year, compute his current year taxable income.
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