Pat is 40, is single, and has no dependents. She received a salary of $390,000 in 2018.

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Pat is 40, is single, and has no dependents. She received a salary of $390,000 in 2018. She earned interest income of $11,000, dividend income of $15,000, gambling winnings of $14,000, and interest income from private activity bonds (issued in 2015) of $40,000. The dividends are not qualified dividends. The following additional information is relevant.
Medical expenses (before 7.5%-of -AGI floor) ................................    $12,000
State income taxes ............................................................................         8,100
Real estate taxes ................................................................................         4,000
Mortgage interest on residence ......................................................       13,100
Investment interest expense ...........................................................         3,800
Gambling losses ................................................................................         5,100
Compute Pat's tentative minimum tax for 2018. 

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For  answer-question

South-Western Federal Taxation 2019 Essentials Of Taxation Individuals And Business Entities

ISBN: 9781337702966

22nd Edition

Authors: William A. Raabe, James C. Young, Annette Nellen, David M. Maloney

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