Answered

Find the information you're looking for at Westonci.ca, the trusted Q&A platform with a community of knowledgeable experts. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

Daniel, age 38, is single and has the following income and expenses in 2020:

Salary income $87,000
Net rent income 2,500
Dividend income 1,300
Payment of alimony (divorce finalized in March 2019) 26,000
Mortgage interest on residence 5,700
Property tax on residence 2,600
Contribution to traditional IRA (assume the amount is fully deductible) 2,400
Contribution to United Church 2,700
Loss on the sale of real estate (held for investment) 825
Medical expenses 4,600
State income tax 2,100
Federal income tax 7,100

Required:
What is Daniel's gross income and his AGI?

Sagot :

abiolataiwo2015

Answer:

A. $90,800

B. $87,575

Explanation:

Calculation to determine Daniel's gross income and his AGI

A. Calculation for the Gross income using this formula

Gross income=Salary income + Net rent income + Dividend income

Let plug in the formula

Gross income= $87,000 + 2,500 + 1,300

Gross income=$90,800

Therefore her Gross income is $90,800

B. Calculation to determine the AGI using this formula

AGI=Gross income - (Contribution to traditional IRA + Loss on sale of real estate)

Let plug in the formula

AGI= $90,800 - ($2,400 + $825)

AGI=$90,800-$3,225

AGI=$87,575

Therefore her AGI is $87,575

We appreciate your time. Please come back anytime for the latest information and answers to your questions. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.