Martha, who is single, has the following income and expenses for 2019: Gross income from sole proprietorship
Question:
Martha, who is single, has the following income and expenses for 2019:
Gross income from sole proprietorship $148,500
Cash operating expenses for sole proprietorship 24,250
Interest income 1,400
Dividend income (qualified) 1,200
Contribution to solo-(k) plan 4,000
Medical insurance for self-employed individual 6,600
Medical expenses before floor 2,600
Acquisition residence insurance 6,800
Home equity residence interest 2,233
Real property taxes 5,200
Car tax (amount based on value) 550
State income tax paid 4,440
Cash charitable contributions 75
Contribution of appreciated stock,
FMV = $6,000, basis = 780
Miscellaneous itemized deductions 555
What is Martha’s gross federal income tax? You may assume that Martha’s taxable income before the QBI deduction is less than $160,700.