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During 2014, Travis takes out a $40,000 loan, using stock he owns as collateral. He uses $10,000 to purchase a car, which he uses 100%
During 2014, Travis takes out a $40,000 loan, using stock he owns as collateral. He uses $10,000 to purchase a car, which he uses 100% for personal use. He uses the remaining funds to purchase stocks and bonds. He pays $3,200 interest on the loan. Travis also reports the following for the year:
AGI without any investment income | $130,000 |
State income taxes paid | 8,400 |
Dividends income | 10,000 |
Interest income | 2,100 |
Investment expenses (exclusive of interest) | 8,000 |
Net short term capital gains | 7,300 |
Net long term capital gain | 8,600 |
Travis is married and files a joint tax return. What is his net taxable income?
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