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Investment Activities The Adams did not own, control or manage any foreign bank accounts, nor were they grantors or beneficiaries of a foreign trust during

Investment Activities

The Adams did not own, control or manage any foreign bank accounts, nor were they grantors or beneficiaries of a foreign trust during the tax year.

The Adams received the following interest and dividends during the year.

Interest Income

Amount

Commerce Bank

$6,000

City of Kansas City, MO bonds

$3,600

U.S. Treasuries

$2,800

Dividend Income

Ordinary Dividends

Qualified Dividends

Amen Inc.

$10,000

$9,400

Masters, Inc.

$5,000

$4,700

Tiger Company

$3,500

$3,400

The Adams sold the following stock during the year.

Stock

Date Purchased

Date Sold

Amount Realized

Tax Basis

Dustin, Inc.

1/10/2004

9/30/2020

$150,000

$37,500

Augusta Company

2/9/2020

1/15/2020

$25,000

$21,200

Bubba, Inc.

2/7/2019

7/8/2020

$12,500

$20,700

Zach Johnson, Inc.

11/14/2014

3/1/2020

$20,000

$19,025

The Adams have a $4,000 long-term capital loss carryover from the prior tax year.

Bailey is a 10% owner in a real estate partnership named Double-Dipping, LP (EIN 50-7654321). The limited partnership reported ordinary business income for the year, of which $35,000 was Baileys share. Bailey received a K-1 from the limited partnership reporting her allocable share of the business income. Bailey acquired the interest several years ago. Her basis in the limited partnership and at-risk amount before considering her 2020 income allocation was $42,000. Bailey is a passive owner with respect to this entity.

Grant is a 20% owner in Natural Sunshine, Inc. (NS) (EIN 24-9876543). NS is a Subchapter S corporation. The company reported an ordinary business loss for the year of, which $40,000 was Grants share. Grant received a K-1 from NS reporting his allocation of this business loss. Grant acquired the stock several years ago. His basis in the stock and at-risk amount before considering the 2020 loss allocation was $25,000. Grant is a passive owner with respect to this entity.

Grant and Bailey are Married Filing Joint with 2 Dependents.

What is Net investment income if AGI is 343350

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