George has the following income this year: salary of $52,000, interest and dividends of $1,200, gain on sale of stock of $3,000, loss on a rental house which he manages of $2,500, and ordinary loss from an investment in a limited partnership in which George makes no management decisions of $3,597. What is George's AGI? a.$52,603 b.$50,103 c.$53,700 d.$56,200
Adjusted gross income (AGI) is your yearly gross income less certain changes that the Internal Revenue Service uses to decide your annual tax obligation for the year. As endorsed in the United States tax code, AGI is an adjustment of Gross Income. Net income is just the amount of all the cash you acquired in a year, which may incorporate wages, profits, capital gains, royalties, interest income, alimony, Rental income, and retirement dispersion. AGI makes certain changes following your gross pay to arrive at the figure on which your assessment responsibility will be ascertained.
Calculation
AGI = adjustment in the gross income
= 52,000 + 1,200 + 3,000 - 2,500 – 3597
= $50,103
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