Based upon the following facts, determine the Harolds adjusted gross income for 2021:

Patty Harold, social security number 062-74-4106 who is 34 years old, and her husband, Sam Harold, social security number 099-76-1111 who is 52

years old, are filing a joint return for 2021. They live with their children in a brownstone at 301 Park Avenue, New York, NY 10003. The following relevant information is provided regarding their tax transactions during 2021:

On January 7, 2021, Sam paid his divorce attorney $15,000 for representing him in the divorce that was finalized on January 6, 2021. Pursuant to his divorce agreement, during 2021, Sam paid his ex-wife, Nancy Lopez, social security number 090-44-4444, $60,000 alimony and will continue to pay her this amount until she dies or remarries.

During 2021, Patty was an executive for the Tan Furniture Company.

From February 7, 2020 until January 31, 2021, Patty had worked in the Italian branch of Tan Furniture. She earned and collected 1/12 of her $180,000 annual salary while living in Italy.

In addition to her salary, Patty received the following benefits:

• Like all other Tan Furniture executives, Patty is permitted to purchase furniture at a discounted price. During 2021, Patty purchased furniture from the company for $19,500, the price Tan ordinarily would charge a wholesaler for the same items. The retail price of the furniture was $32,500, and Tans cost was $17,000.
• Tan Furniture paid on Pattys behalf $3,000 of disability income protection premiums and $4,000 of long-term insurance premiums. The wage continuation insurance is available to all employees and pays the employee three-fourths of the regular salary if the employee is sick or disabled. The long-term care insurance is available to all employees and pays $150 per day towards a nursing home or similar facility
• Like all other executives of Tan, Patty receives a fringe benefit in the form of annual tuition scholarships of $15,000 for any children in elementary or high school. Patty is eligible for both of her two step-children. The scholarships are paid by the company directly to each childs educational institution and are payable only if the student maintains a B+ average.

In addition to her work for Tan, Patty pursues her lifetime passion for painting. She spent $7,900 on supplies, $9,000 for renting a studio where she spends much time relaxing and surfing the internet for painting inspirations, and $1,000 on museum fees to view other artists work for inspiration. Although Patty never sold a painting during the past 7 years that she was spending on her painting passion, this year she finally sold two paintings to Sams friends (and business colleagues) for $500 each.

On December 20, 2012, Patty had bought land from her mother, Sybil, for $64,000. Her mothers basis in the land was $73,000. On December 22, 2021, Patty sold the land to an unrelated third party for $72,000.

Sam is a manager of First Chance Casino, which has gambling facilities, a bar, restaurant, and hotel. 60% of Casinos employees operate the gambling facilities and restaurant. For the convenience of Casino, these employees were always provided meals on the premises. This year, Casino allowed all of its employees to obtain food from the restaurant at no charge during working hours. Sam frequently eats at the restaurant which has great food and saves him money. Sam estimates that his 2021 savings were $10,000 (which he otherwise would have spent on food), even though he knows that Casino Restaurant would have charged over $16,000 for the food that he ate there.

Sams salary for 2021 was $250,000. In addition, Sam participated in the firms nondiscriminatory pension plan. Sam contributed 5% of his salary and the firm contributed an additional 5% of his salary.

The firm provided Sam with the following additional benefits:

a) it paid $22,500 in premiums for family medical insurance to cover Sams entire family for the entire year

and b) it provided term life insurance to all its employees, including Sam, equal to their annual salary (which for Sam was $250,000.) The actual premiums paid by Casino for Sams insurance was $6,000.

During 2020, Sam had been injured in an automobile accident which was totally the fault of the other driver. Sams prized Corvette, which Sam had bought 15 years earlier for $60,000, was totaled in the accident. On December 30, 2021, the other drivers insurance company finally reached a settlement with Sam and paid him the following amounts:

Coverage for the Corvette $100,000

Damages (pain and suffering) for breakage of pelvis and spine $180,000

Medical expenses (incurred and covered 50% by insurance during 2020 ) $ 30,000

Loss of wages when unable to work during 2020 $ 60,000

Punitive damages for reckless driving $100,000

During 2021, Sam also prevailed in a civil libel and slander suit against National Gossip which, during 2019, had published an article claiming that, during 2019, Sam had been fired from a previous job for embezzlement. On July 17, 2021, the court awarded Sam $120,000 for damages to his professional reputation, $100,000 for damages to his personal reputation, and $50,000 in punitive damages.

On February 5, 2021, Sam inherited a beachfront apartment in Long Beach NY from an elderly colleague who had promised the apartment to Sam provided that he maintained the apartment and cared for the colleague (who had no family to take care of him or the apartment.) An appraiser valued the apartment at $350,000.

During 2021, the Harolds rented out the apartment for 200 days for $30,000. During 2021, the Harolds also used the apartment for 19 days for a wonderful family vacation. The annual cost of maintaining the apartment was $17,000 of property taxes, $4,000 of utilities, $3,000 paid to a managing agent, $3,000 paid for insurance, and $6,000 of depreciation expense.