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