Question

# Halal has the following for 2019: \$103,000 salary, \$5,000 dividend income, \$4,000 interest income on the...

Halal has the following for 2019: \$103,000 salary, \$5,000 dividend income, \$4,000 interest income on the city of San Antonio bonds, a gain of \$11,000 on a stock sale, \$3,500 traditional IRA contribution, and a \$3,000 operating loss on a small sole proprietorship that he owns.

What is Hala’s AGI

Shireen, age 58 and single, has no dependents and an AGI of \$50,000 and these  expenses: unreimbursed medical expenses of \$1,200,charitable contribution of \$5,000, real estate taxes  of \$3,500, and residence mortgage interest of \$7,000.

For 2019, Shireen’s deductions from AGI is?

 A. \$12,200. B. \$15,500. C. \$19,700. D. \$16,700. E. some other amount.

1. Salary = \$103,000

Dividend Income = \$5,000

Interest income = \$4,000

Capital gain on sale of stock = \$11,000

Total Gross Income = \$103,000 + \$5.000 + \$4,000 + \$11,000 = \$123,000

Operating loss on proprietorship = \$3,000

Hala's AGI = \$123,000 - \$3,500 - \$3,000 = \$116,500

2. Shireen’s deductions are as follows:

Unreimbursed medical expenses that exceeds 7.5% of AGI is only allowed as deductions. Shireen's 7.5% of AGI is \$3,750, hence unreimbursed medical expenses of \$1,200 is not deductible.

Charitable contribution = \$5,000

Real estate taxes = \$3,500

Residence mortgage interest = \$7,000

For 2019, Shireen’s deductions from AGI is = \$5,000 + \$3,500 + \$7,000 = \$15,500

 B. \$15,500.

#### Earn Coins

Coins can be redeemed for fabulous gifts.