Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In 2020, Jen, a single individual, reported the following items of income and deduction: Click the icon to view the items.) (Click the icon to

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
In 2020, Jen, a single individual, reported the following items of income and deduction: Click the icon to view the items.) (Click the icon to view the standard deduction amounts.) Requirement Jen owns 100% and is an active participant in the rental real estate activity. What is her taxable income for 2020? Begin by determining whether Jen is entitled to a deduction for rental real estato activities. (Enter *o* if Jen is not eligible for the deduction) The deduction for rental real estate losses is Now determine the taxable income for 2020. Begin by calculating the adjusted gross income (AGI) Adjusted gross income (AGI) Adjusted gross income (AGI) Now calculate the itemized deductions. Total itemized deductions Compute her taxable income for 2020 Total itemized deductions Compute her taxable income for 2020 Adjusted gross income (AGI) Minus: Deductions from AGI Taxable income Salary $ 165,000 Interest income Long-term capital gain from sales of stock Short-term capital losses from sales of stock Loss from a passive rental real estate activity Interest expense on loan to purchase stock Qualified residence interest on residence 10,000 19,000 (18,000) (21,000) (24,000) (16,000) (7,500) (4,000) (2,700) Charitable contributions Property taxes on residence Tax return preparation fees Charitable contributions Property taxes on residence Tax return preparation fees Unreimbursed employee business expenses (7,500) (4.000) (2,700) (1.100) ens $ om 24,800 18,650 $ (A STANDARD DEDUCTION Filing Status Married individuals filing joint returns and surviving spouses Heads of households Unmarried individuals (other than surviving spouses and heads of households) Married individuals filing separate returns Additional standard deduction for the aged and the blind; Individual who is married and surviving spouses Additional standard deduction for the aged and the blind; Individual who is unmarried and not a surviving spouse Taxpayer claimed as dependent on another taxpayer's return: Greater of (1) earned income plus $350 or (2)$1,100. *These amounts are $2,600 and $3,300, respectively, for a taxpayer who is both aged and blind. $ 12,400 AGI $ 12,400 $1,300 $1,650 38

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Ressourceneffizientes Wirtschaften

Authors: Heinz Karl Prammer

2nd Edition

3658046082, 9783658046088

More Books

Students also viewed these Accounting questions

Question

1. Make sure materials are easy to reach and visible to students.

Answered: 1 week ago