Abe, who is single, retired from his job this year. He received a salary of $25,000 for the portion of the year that he worked, tax-exempt interest of $3,000, and dividends from domestic corporations of $2,400. On August 1, he began receiving monthly pension payments of $1,600 and Social Security payments of $700. Assume an exclusion ratio of 40% for the pension. Abe owns a duplex that he rents to others. He received rent of $14,000 and incurred $17,000 of expenses related to the duplex. He continued to actively manage the property after he retired from his job. Requirement Compute Abe's adjusted gross income.
Abe, who is single, retired from his job this year. He received a salary of $25,000 for the portion of the year that he worked, tax-exempt interest of $3,000, and dividends from domestic corporations of $2,400. On August 1, he began receiving monthly pension payments of $1,600 and Social Security payments of $700. Assume an exclusion ratio of 40% for the pension. Abe owns a duplex that he rents to others. He received rent of $14,000 and incurred $17,000 of expenses related to the duplex. He continued to actively manage the property after he retired from his job. Requirement Compute Abe's adjusted gross income.
Chapter8: Taxation Of Individuals
Section: Chapter Questions
Problem 70TA
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Transcribed Image Text:Abe, who is single, retired from his job this year. He received a salary of $25,000 for the portion of the year that he worked, tax-exempt interest of $3,000, and dividends from domestic corporations of $2,400. On
August 1, he began receiving monthly pension payments of $1,600 and Social Security payments of $700. Assume an exclusion ratio of 40% for the pension. Abe owns a duplex that he rents to others. He received
rent of $14,000 and incurred $17,000 of expenses related to the duplex. He continued to actively manage the property after he retired from his job.
Requirement
Compute Abe's adjusted gross income.
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