Fred and his wife file a joint return in 2015. Their gross income before adjustments is $150,000
Question:
Fred and his wife file a joint return in 2015. Their gross income before adjustments is $150,000 and they have no children or other dependents. They have the following deductions:
Alimony paid to Fred’s ex-wife ...................... $5,000
Real property taxes ......................................$12,000
State income taxes ......................................$6,000
Qualified residence interest ......................$10,000
Unreimbursed moving expenses ..............$3,000
Work related seminar ...................................$2,000
Tax return preparation fee: .......................$1,500
Interest on loan to purchase a car for personal use. $500
a. What is their AGI and taxable income?
b. How would your answer change if their gross income before adjustments was $400,000.
c. Discuss the change to the Pease Limitation from the TCJA.
Fundamentals of Taxation 2019
ISBN: 9781260158670
12th edition
Authors: Ana M. Cruz Dr., Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler, Jinhee Trone