In: Accounting
Shauna Coleman is single. She is employed as an architectural
designer for Streamline Design (SD). Shauna wanted to determine her
taxable income for this year. She correctly calculated her AGI.
However, she wasn’t sure how to compute the rest of her taxable
income. She provided the following information with hopes that you
could use it to determine her taxable income.
b. Assume Shauna’s AGI is $207,000. Determine
Shauna’s taxable income.
Amounts are in $
The year of Tax is 2019 and rules of IRS have been followed in preparation
Notes
1. Medical expenses
Total medical expenses above 7.5% are deductible
So 4,680 + (115 x 20) + 3,400 + 3,000 + 450 - 7.5% (207,000) is negative amount. Hence nothing is deductible
(115 miles at 20 cents is deductible for 2019)
2. State taxes along with refund of 250 is deductible (1800+250)
3. Charitable contribution
Fair value of stock is deductible
So total deduction = 1,000 + 300 + 500 + (200 x ¢14)
= 1,828
(200 miles at ¢14 is deductible for church related travel)
(Services amount are not deductible)
4. Loss from Horse racing as a hobby is not deductible