1.
Jamie is single, 52 years old, and has $279,000 of adjusted gross income for 2016. Her itemized deductions (before limitations) for the year are:
- Medical expenses – $31,020
- property taxes on home – 6,750
- State income taxes – 9,300
- Mortgage interest on residence – 13,350
- Charitable contribution to university – 7,500
- Unreimbursed employee business expense – 10,800
Compute Jamie’s taxable income for 2016, being sure to show her allowable itemized deductions and personal exemption.
2.
Paul reports the following income and loss in the current year 2016:
- Salary – $153,000
- Income from Activity A – 45,900
- Loss from activity B – (22,950)
- Loss from activity C – (20,400)
All three activities are passive activities with respect to Paul and none of the activities are rental activities. Paul also has 53,550 of suspended losses attributed to activity C carries over from earlier years. During the year, Paul sells activity C and realized a $38,250 taxable gain on the sale. What is Paul’s adjusted gross income for 2016 as a result of these transactions.
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