Salary $168,000

Interest income 16,000

Long-term capital gain from sales of stock 20,000

Short-term capital losses from sales of stock -17,000

Loss from a passive rental real estate activity -22,000

Interest expense on loan to purchase stock -24,000

Qualified residence interest on residence -8,000

Charitable contributions -7,000

Property taxes on residence -1,500

Tax return preparation fees -1,500

Unreimbursed employee business expenses -2,500

Standard deduction

Filing Status 2011

Single individual other than heads of households $5,800

Married couples filing joint returns and surviving spouses 11,600

Married people filing separate returns 5,800

Heads of households 8,500

2011

Personal exemption amount $3,700

Begin by calculating the adjusted gross income (AGI).

Salary	168000
Investment interest	16000
Net long-term capital gain	3000
Adjusted gross income (AGI)

The passive loss exemption for real estate is

$nothing.

(Enter "0" if

SusanSusan

is not eligible for the deduction.)

Now calculate the itemized deductions.

Investment expenses			(24000)
Mortgage interest			(8000)
Charitable contributions			(7000)
Property taxes on residence			(1500)
Miscellaneous itemized deductions:
Less
Excess miscellaneous itemized deductions
Total itemized deductions

Compute

SusanSusan's

taxable income in

20112011.

Minus:	Deductions from AGI:
Taxable income