Year: 2017

the following expenditures: During 2016, James Jones, a single, cash method taxpayer incurred Qualified medical expenses Investment interest expense S8,000 16,000 Other Investment activity expenses 15,000 12,000 Interest on loan on personal auto 2,000 3,000 7,000 4,500 4,000 5,000 Qualified residence interest Charitable contributions State Income tax paid State sales tax paid Property taxes Tax retun preparation fees James' income consisted of the following items: Salary Interest Income Short Capital gains Short term Capital Losses $70,000 20, 000 23,000 (15,000) REQUIRED a) Compute James' taxable income for the year b) Complete Form 1040- front and back through taxable income line 43 and Schedule A e) Determine if Schedule B is required. If so, prepare the schedule for the return