John, age 40, is single and has the following income and expenses for 2020:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- John, age 40, is single and has the following income and expenses for 2020:
Salary $170,000
Net rental income $7,200
Dividend income (qualified) $4,000
Interest from TD bank $65
Interest from City of Phila bonds $1,200
Loss on sale of section 1244 stock purchased directly from the Corporation $40,000.
Alimony payment (divorce finalized December 30, 2018) $12,000.
Loss on personal auto as a result of an auto accident $2,500
Contribution to traditional IRA $5,000
Charitable contributions $750
Mortgage interest on personal residence $12,000
Real estate taxes $4,500
State income taxes $5,219
Parking ticket (occurred during work related meeting) $100.
Medical expenses (not reimbursed) $4.980.
Calculate John’s AGI, taxable income and tax liability for 2020.
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