Pete Homes is 45 years old and was divorced three years ago. His daughter lives with his ex-wife, and he does not ever see her. Your task is to calculate Pete's 2023 taxable income using the following information:

1. Pete sold his personal residence for $300,000. He originally purchased the house for $200,000 on January 1, 2010. Pete sold the house on January 1, 2023 and paid $10,000 in realtor commissions.
2. Even though Pete never sees his daughter, he still hopes to one day reconnect with her. So, in this spirit, he contributes $1,000 to a Sec. 529 plan for her each year. There have been no distributions from the plan.
3. In February of 2023, Pete was hurt on the job. He worked in a factory, and his shoelaces got caught in a machine, resulting in a disfigured foot. He received $5,000 of worker's compensation related to the injury.
4. After the injury, Pete walked funny, and his coworkers mocked and teased him. One coworker in particular teased Pete so much that Pete did not want to show up for work anymore. After missing a week of work, Pete was fired, and he started collecting unemployment income. He received $2,000 of unemployment income.
5. After Pete was fired, he could not stop thinking about the coworker who teased him, and he finally contacted a lawyer to sue the individual. Pete's lawyer was able to convince a judge that Pete suffered severe emotional distress from the teasing, and Pete was awarded $8,000 for lost wages, $2,000 for emotional distress, and $4,000 in punitive damages.
6. After winning the lawsuit, Pete started feeling better about himself and got out there and found a new job, a better job! He had a $110,000 salary in 2023. In addition, his employer offered health insurance through a high-deductible plan and paid $6,000 of the $10,000 of premiums (Pete paid the other $4,000). Pete also participated in the employer's 401(k) plan. He contributed $6,000 and his employer contributed $6,000.
7. The employer thinks Pete has management potential and encouraged Pete to take management courses at night at a local university. The employer pays $5,000 in tuition for Pete to take the classes.
8. As a participant in a high-deductible health insurance plan, Pete also qualifies for a health savings account. Pete sets up the account and contributes $3,000 to the account in the current year. He also takes a distribution from the account of $2,000 to pay for dental expenses.
9. Pete pays his ex-wife $3,000 this year in alimony and $5,000 in child support. The divorce was finalized in 2018.
10. In the current year, Pete had $4,000 of state income tax withheld from his checks. He also made a state tax payment of $500 related to his 2022 return that he filed in April of 2023. He also paid federal payroll taxes of $4,590 on his wage income.
11. After selling his other home, Pete bought a new house. He purchased the new home for $500,000. He made a down payment of $200,000 and took out a loan for $300,000. He paid interest on this loan in the current year of $3,500. A month after purchasing the home, he decided he wanted to buy a new car and decided to use a home equity loan to pay for the car. He took out a home equity loan of $30,000 and paid $700 of interest on the loan in the current year. He also paid $2,000 of interest on credit cards in the current year. The credit cards were used to pay for random personal expenses.
12. He paid real estate taxes on his new home in the current year of $6,000.
13. Pete considers himself a very charitable person and made the following contributions to qualified public charitable organizations:
    1. Apple stock purchased 5 years ago for $3,000 with a FMV of $4,500
    2. Cash $5,000