Q1.Personal Exemption\' is the dollar amount that each individual taxpayer is ab

Question

Q1.Personal Exemption' is the dollar amount that each individual taxpayer is able to deduct for him or herself or a dependent each year. For tax year 2013, the standard personal exemption amount was $3900 per person. Kate is single and a homeowner. In 2013, she has property taxes on her home of $3,000, makes charitable contributions of $2,000, and pays home mortgage interest of $7,000. Kate's adjusted gross income for 2013 is $77,000.

Required: Compute her taxable income for 2013.

answer in microsoft word please

Explanation / Answer

solution :

Assessee name : Kate

Computation of Taxabale income of Kate   

Less : Deductions :

Property taxes can't be considered because it is the only property held by kate. So, it is treated as self occupied property but interest is allowed on that self occupied property.

Particular's Amount ($) Kate's adjusted gross income 77,000 less: Loss from house property (Interest) 7,000 Gross total income 70,000

Less : Deductions :

Standard personal exemption 3,900 Charitable contributions 2,000 Taxable income for 2013 64,100

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