Question
austin, a single individual with a salary of 100,000, had additional income as follows: austin was in a car accident and received compensatory damages for
austin, a single individual with a salary of 100,000, had additional income as follows: austin was in a car accident and received compensatory damages for his broken nose in the amount of 25,000.
austin also incurrred and paid the following expense during 2013:
medical expenses 5,000
parking tickets 200
alimony 24,000
legal fees associated with divorce proceedings 4000
charitable contributions 2000
casualty loss (after $100 floor) 1000
mortgage interest on personal residence 4500
property tazes on pesonal residence 4200
austin gives his nephew a gift in the amount of 3000
moving expenses 2500
contribution to a traditional IRA 4000
sales taxes (no state or local income tax imposed) 1300
1. Identify each expense as for AGI, from AGI or not dedctible.
2. Using the tax formula, provide a detailed calculation of Austins 2013 taxable income
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