Question
Dre and Bow are a wealthy couple. Dre works full-time in a marketing partnership. In the past he has contributed $100,000 of cash and property
Dre and Bow are a wealthy couple. Dre works full-time in a marketing partnership. In the past he has contributed $100,000 of cash and property with a FMV of $75,000 and a basis of $25,000. In first 5 years of the partnership Dres share of the income was $35,000. However, since then there has been a string of losses. In the next few years Dres share of losses totaled $125,000. 2017 was a rough year and Dres share of loss from the partnership is $65,000.
Bow makes $375,000 in her job as an anesthesiologist. She also has invested wisely and her investments paid $38,000 in dividends and $47,000 in interest during 2017. Her investments also include a partnership, she doesnt work for this partnership in any capacity. She contributed $75,000 to the partnership in cash as her original investment. Since then, her share of the income generated by the partnership is $40,000. In 2017, her income from the partnership was $5,000.
In 2018 Bows salary remains $375,00 and her investments generate $41,000 in dividends and $47,000 in interest. However, her partnership generated a loss of $5,000. Dres partnership turned things around and his share of the income was $22,000. Assuming no other items, what is Bow and Dres AGI for 2018?
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