Tammy, age 46, is single and has a salary of $180,000 in 2019. She earns $3,000 in qualified dividend income from Apple stock with respect to which she chooses not to forgo the long-term capital gain rate. In 2019, she pays home mortgage interest of $25,000 on her personal residence. The home mortgage is $600,000. Her property tax on her personal residence is $7,000 and she has a short-term capital gain of $2,000. She contributed $4,000 to charity in 2019. She traded on margin and paid $3,000 in investment interest expense during the year. Her state income tax is $12,000. Tammy participates in an employer sponsored pension plan. What is Tammy’s taxable income?

a. $144,000

b. $143,000

c. $135,000

d. $134,000

e. None of the choices listed are correct.

Answer rating: 100% (QA)

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