in 2018, Heidi, a single individual, reported the following items of income and deduction: LOADING...(Click the icon
Question:
in 2018, Heidi, a single individual, reported the following items of income and deduction: LOADING...(Click the icon to view the items.) LOADING...(Click the icon to view the standard deduction amounts.) Requirement Heidi owns 100% and is an active participant in the rental real estate activity. What is her taxable income for 2018? Begin by determining whether Heidiis entitled to a deduction for rental real estate activities. (Enter "0" if Heidi is not eligible for the deduction.) The deduction for rental real estate losses is $ 0. Now determine the taxable income for 2018.
Begin by calculating the adjusted gross income (AGI).
Salary $166,000
Interest income 14,000
Net long-term capital gain 5,000
Adjusted gross income (AGI) $185,000
Now calculate the itemized deductions.
Property taxes on residence 5000
Mortgage interest 12000
Investment interest expense 21000
Charitable contributions 8000
Total itemized deductions
Salary | $166,000 | |
Interest income | -2,000 | |
Long-term capital gain from sales of stock | -2,000 | |
Short-term capital losses from sales of stock | -2,000 | |
Loss from a passive rental real estate activity | -2,000 | |
Interest expense on loan to purchase stock | -2,000 | |
Qualified residence interest on residence | -2,000 | |
Charitable contributions | -2,000 | |
Property taxes on residence | -2,000 | |
Tax return preparation fees | -2,000 | |
Unreimbursed employee business expenses | -2,000 |
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson