Read the case on which your Portfolio Project is based and determine all items that will be excluded from gross income. In a MS Excel spreadsheet, list all excluded items in column A. In column B, explain why the item is excluded. You may reference the specific tax law, the text (make sure you include the page number), or a link to another trusted source. A trusted source is either supported by the IRS or academic literature (that includes textbooks) under which tax law for the year 2017 is applicable.

Taxpayer Information

Name: John Washington

Address: 3450 Green St.

Miami, FL 54321

DOB: 5/5/1960

Filing Status: Married

SSN: 434-20-2020

Occupation: Engineer

Name: Debra Washington

Address: 3450 Green St.

Miami, FL 54321

DOB: 7/7/1962

Filing Status: Married

SSN: 411-21-4568

Occupation: Teacher

INCOME INFORMATION:

Wages and Compensation

The following information is taken from John Washingtons 2017 Form W-2 Wage and Tax Statement:

Box 1 Wages, tips, and other compensation	80,000
Box 2 Federal Withholding	12,500
Box 17 State Income Tax Withholding	2,000

The following information is taken from Debra Washingtons 2017 Form W-2 Wage and Tax Statement:

Box 1 Wages, tips, and other compensation	42,000
Box 2 Federal Withholding	3,500
Box 17 State Income Tax Withholding	750

Interest and Dividends

John had interest income from a savings account from Everest Bank of $500.00

Debra had dividend income of $550 from Blue Co. stock.

Capital Gains

John had the following stock transactions in 2017:

He sold 1,000 shares of Apex Co. for $ 12,000 on June 7, 2017, which he purchased on April 1, 2017 for 25,000

Rental Real Estate

The couple owns a rent house which he purchased on July 1, 2014. The income and expenses of the rental real estate unit are as follows:

Rental income $12,000

Property taxes $1,500

Depreciation $1,000

Repairs and Maintenance $750

Insurance $2,000

Other Transactions in 2017

1. Debra had educator expenses in 2017 of $450.00

2. John had gambling winnings of $1,000.

3. John was the beneficiary of his mothers life insurance policy.

His mother died in 2017 and he received $50,000 under this policy.

4. Debra paid $700 in student loan interest.