Intro To Tax, Accounting

During 2015, Joe, a single, cash method taxpayer incurred the following expenditures:

Qualified medical expenses $12,000

Investment Interest Expense 17,000

Other investment activity expenses 11,000

Qualified residence interest 10,500

Interest on loan on personal auto 1,400

Charitable Contributions 2,800

State Income tax paid 7,300

State sales tax paid 4,100

Property Taxes 4,200

Tax Return preparation and consulting fees 5,600

Joe's income consisted of the following items:

Salary 80,000

Interest income 19,000

Long Term Capital Gains 13,000

Long term Capital losses (9,000)

Compute Joe's taxable income for the year (assuming that he makes an election to have the net capital gain taxed at the regular tax rates). Also assume that Joe is 67 years old. Thus, his medical expense deduction is subject to the 7.5% rather than the 10% limit.

Begin by calculating the adjusted gross income (AGI).

17,000 for investment income is incorrect and I don't know why.

Carolyn D Do Homework-Carolyn a https://www.irs.gov/pub What is Form 4952: Invest x -) https://www.mathxl.com/Student/PlayerHomework.aspx?homeworkId=330015981&questionId=1&flushed-false&cld-3484808&back-DoAssignments.aspx%3fvieC E Facebook M Yahoo! G Google Carolyn Hardy / Pint. 9 University of Cincin. Free Calorie Counte. "Blackboard Learn Systems Analysis an Questions-Askbot MyAccountingLab Carolyn Hardy 11/13/15 2:22 AM Homework: Homework 5 Save Score: 2 of 10 pts 2 of 3 (1 complete) HW Score: 40%, 8 of 20 pts Pl:7-51 (similar to) Question Help During 2015, Joe, a single, cash method taxpayer incurred the following expenditures ( payerincurred thefollowing expenditures (Click the icon to view the expenditures.) (Click the icon to view the standard deduction schedule.) Click the icon to view the schedule of personal and dependency exemption and phase-outs.) Read the requirements Now calculate the itemized deductions. Medical expenses Less: 7.5% ofAGI Excess medical expenses Taxes Charitable contributions Mortgage interest Investment interest Miscellaneous itemized deductions $ 12,000 725 $ 4,275 11,500 2,800 10,500 17000 Tax preparation and consulting fees Investment expenses 2% of AGI 5,600 11,000 (2,060 Less Excess miscellaneous itemized deductions 14,540 Choose from any list or enter any number in the input fields and then click Check Answer. 2 parts remaining Clear All Final Check 2:22 AM 11/13/2015