Melvin, a single individual, had the following types of income in 2020: Salary $260,000 Interest 40,000 Dividends
Question:
- Melvin, a single individual, had the following types of income in 2020:
Salary $260,000
Interest 40,000
Dividends 20,000
Gain on sale of principal residence 270,000
Net rental income from real estate 10,000
Net Sch. C income from RE consulting practice 50,000
Assuming that Melvin’s modified AGI for 2020 is $320,000, that he meets the qualifications for gain exclusion of section 121, that he does not meet the tests as a real estate professional under the section 469 rules, but that he does materially participate in the consulting practice, compute his 2020 tax liability under section 1411 of the Internal Revenue Code.
Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley