In 2010, Julie, a single individual, reported the following items of income and

Question

In 2010, Julie, a single individual, reported the following items of income
and deduction:
Salary $166,000
Interest income 14,000
Long-term capital gain from sales of stock 22,000
Short-term capital losses from sales of stock (17,000)
Loss from a passive rental real estate activity (20,000)
Interest expense on loan to purchase stock (21,000)
Qualified residence interest on residence (12,000)
Charitable contributions ( 8,000)
Property taxes on residence ( 5,000)
Tax return preparation fees ( 2,500)
Unreimbursed employee business expenses ( 2,000)
Julie owns 100% and is an active participant in the rental real estate activity.

What is
Julie’s taxable income in 2010?

Explanation / Answer

Taxable Income

           Salary                    $166,000

           Interest Income        $14,000

          Capital Gain                $5,000

Loss rental real estate        $(20,000)

         Interest expense       $(21,000)

        Residence interest      $(12,000)
     Charitable contributions $( 8,000)
Property taxes on residence $( 5,000)
Tax return preparation fees $( 2,500)
Business expenses               $(2,000)   

                                          $114,500  

Julie’s taxable income in 2010 = $114,500

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.