During 2020, Polly, who is a single, cash method taxpayer, reports the following income and expenditures. Assume
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During 2020, Polly, who is a single, cash method taxpayer, reports the following income and expenditures. Assume no elections were made with respect to LTCG and their tax rates.
Calculate Polly's (1) AGI , (2) Total Deductible Itemized Deductions , (3) Taxable Income , and provide Polly's investment interest expense carryforward to next year . Round all answers to the nearest dollar.
| Category | Amount |
| Salary | 85,000.00 |
| Interest income | 6,500.00 |
| LTCG | 17,000.00 |
| STCL | (15,000.00) |
| Qualified medical expenses | 7,000.00 |
| Investment interest expense | 15,000.00 |
| Qualified residence interest | 16,000.00 |
| Interest on credit cards | 2,000.00 |
| Charitable contributions | 5,500.00 |
| State sales tax paid | 5,100.00 |
| Property taxes | 4,000.00 |
| Tax return prep/consulting fees | 250.00 |
Expert Answer:
Nov210 2521 Answers are highlighted in yellow Solution Investment interest expense is ... View the full answer
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