During 2017, Kent, a 40-year-old single taxpayer, reports the following items of income and expense: Income: Salary

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During 2017, Kent, a 40-year-old single taxpayer, reports the following items of income and expense:


Income:

Salary …………………………………………………………………………………………………………………..$150,000

Dividends from Alta Corporation …………………………………………………..……………………           800

Interest income from a savings account …………………………………………………………….         1,500

Rental income from a small apartment he owns ……………………….……………………….        8,000

Expenses:

Medical …………………………………………………………………………………………………………………      6,000

Interest on a principal residence ………………………………………………………………………….       7,000

Real property taxes on the principal residence……………………..….................................      4,300

Charitable contributions ……………………………………………………………………………………..        4,000

Casualty loss—personal……………………………………………………………………………………..…       6,100

Miscellaneous itemized deductions ……………………………………………………………………....     1,200

Loss from the sale of Delta Corporation stock (held for two years) ………………….......     2,000

Expenses incurred on the rental apartment:

Maintenance …………………………………………………………………………………………………………         500

Property taxes ………………………………………………………………………………………………………      1,000

Utilities …………………………………………………………………………………………………………………       2,400

Depreciation …………………………………………………………………………………………………………      1,700

Insurance ………………………………………………………………………………………………………………        800

Alimony payments to former wife …………………………………………………………………………  10,000


Assuming all of these items are deductible and that the amounts are before any limitations,what is Kent’s taxable income for the year? 

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For  book-img-for-question

Federal Taxation 2018 Comprehensive

ISBN: 9780134532387

31st Edition

Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson

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