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Please answer, I've done most of the problem already. I will give thumbs up if you do it correctly. Pat is 40, is single, and
Please answer, I've done most of the problem already. I will give thumbs up if you do it correctly.
Pat is 40, is single, and has no dependents. She received a salary of $390,000 in 2018. She earned interest income of $11,000, dividend income of $15,000, gambling winnings of $14,000, and interest income from private activity bonds (issued in 2015) of $40,000. The dividends are not qualified dividends. The following additional information is relevant. Medical expenses (before 7.5%-of-AGI floor) State income taxes Real estate taxes Mortgage interest on residence Investment interest expense Gambling losses $12,000 8,100 4,000 13,100 3,800 5,100 a. Compute Pat's taxable income and AMTI Taxable Income Computation Adjusted gross income Itemized deductions 430,000 32,000 V Taxable income 398,000 AMTI Computation Taxable income Add: itemized deductions adjustments Add: income tax preference items 398,000 40,000 V AMTIStep by Step Solution
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