Andy, who is single, retired from his job this year. He received a salary of $20,000 for the portion of the year that he worked, tax-exempt interest of $2,400, and dividends from domestic corporations of $3,900. On September 1, he began receiving monthly pension payments of $1,200 and Social Security payments of $500. Assume an exclusion ratio of 40% for the pension. Andy owns a duplex that he rents to others. He received rent of $13,000 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 Andy's adjusted gross income. Salary Dividend income Pension income (taxable portion) Social security income (taxable portion) Rental income Gross income Minus: Deductions for Adjusted gross income Rental expenses Adjusted gross income $ $ 20,000 3,900 2,880 590 13,000 40,370 (17,000) 23,370
Andy, who is single, retired from his job this year. He received a salary of $20,000 for the portion of the year that he worked, tax-exempt interest of $2,400, and dividends from domestic corporations of $3,900. On September 1, he began receiving monthly pension payments of $1,200 and Social Security payments of $500. Assume an exclusion ratio of 40% for the pension. Andy owns a duplex that he rents to others. He received rent of $13,000 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 Andy's adjusted gross income. Salary Dividend income Pension income (taxable portion) Social security income (taxable portion) Rental income Gross income Minus: Deductions for Adjusted gross income Rental expenses Adjusted gross income $ $ 20,000 3,900 2,880 590 13,000 40,370 (17,000) 23,370
Chapter15: Choice Of Business Entity—other Considerations
Section: Chapter Questions
Problem 51P
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Question
I need a calculation for Social security income (taxable portion) $590.
Transcribed Image Text:Andy, who is single, retired from his job this year. He received a salary of $20,000 for the portion of the year that he
worked, tax-exempt interest of $2,400, and dividends from domestic corporations of $3,900. On September 1, he
began receiving monthly pension payments of $1,200 and Social Security payments of $500. Assume an exclusion
ratio of 40% for the pension. Andy owns a duplex that he rents to others. He received rent of $13,000 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 Andy's adjusted gross income.
Salary
Dividend income
Pension income (taxable portion)
Social security income (taxable portion)
Rental income
Gross income
Minus: Deductions for Adjusted gross income
Rental expenses
Adjusted gross income
69
20,000
3,900
2,880
590
13,000
40,370
(17,000)
23,370
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