Jose is a single taxpayer who is self-employed and who also owns a rental property. Given the following items of income and deduction, determine Jose's AGI. Note that Jose is not eligible to participate in an employer-sponsored health plan. Business income of $90,000 Business expenses of $53,000 Rental income of $28,000 Rental expenses of $15,000 Gambling winnings of $1,500 Gambling losses of $3,000 Self-employment tax of $4,442 (this is 100% of the tax paid, not the deduction) Health insurance premiums $8,000 Mortgage interest on residence $9,800 State income taxes paid $3,600 Charitable contributions $680

Income Tax Fundamentals 2020
38th Edition
ISBN:9780357391129
Author:WHITTENBURG
Publisher:WHITTENBURG
Chapter1: The Individual Income Tax Return
Section: Chapter Questions
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Jose is a single taxpayer who is self-employed and who also owns a rental property. Given the following items of income and deduction, determine Jose's AGI. Note that Jose is not eligible to participate in an employer-sponsored health plan.

Business income of $90,000 Business expenses of $53,000 Rental income of $28,000 Rental expenses of $15,000 Gambling winnings of $1,500 Gambling losses of $3,000 Self-employment tax of $4,442 (this is 100% of the tax paid, not the deduction) Health insurance premiums $8,000 Mortgage interest on residence $9,800 State income taxes paid $3,600 Charitable contributions $680

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