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answer all parts Anthony is a cash method taxpayer. Below are his items of income in 2022. - Salary: $80k - Annuity payment received: $10k.
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Anthony is a cash method taxpayer. Below are his items of income in 2022. - Salary: $80k - Annuity payment received: $10k. Anthony originally purchase the annuity a while ago for 60k. The annuity promises to pay Anthony $10k every year for 10 years. - Income from stock trading activity: $5k. Anthony is a part-time day-trader, where he buys and sells stock on a day-to-day basis. The longest stock he has ever held is 3 months. Other than the 3 main sources of income, Anthony also has the following items where he is not sure whether to include in the tax calculation or not - Gambling prize won: \$5k. Anthony took a trip to Vegas and won \$5k playing Blackjack. The only issue is, to get that $5k winning, he has already lost $4k in the same trip on the Blackjack table. - Profit from house sale: $25k. In 2022, Anthony decided to sell his main house for $500k. He originally bought it just last year for $475K. a) Calculate Anthony gross income in 2022. Show calculations and explanations. b) Name 1 thing that Anthony should have done differently to any of his 5 income items above that could significantly reduce the amount of income that he needs to recognize (in other words, lower his gross income). Provide a detailed explanation why it would help Step by Step Solution
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