Reference no: EM132011500
Problem - Esther, age-42, is unmarried and has no dependents. She has the following income and deductions for 2015:
RECEIPTS FOR YEAR
Salary from his job $ 89,500
Medical coverage and similar fringe benefits provided by employer (fair value) 16,500
Employee business expense reimbursement 4.250
Interest from bank 5,250
Interest from state bonds 1,500
Life insurance proceeds in 2015 related to death of spouse in 2013 125,000
Rental income-4-plex (active participation) 61,900
Operating loss from Sogol, LLC (no material participation) -2,345
EXPENDITURES FOR YEAR
Standard deduction $ 5,950
Rental 4-plex:
Interest expense 34,000
Other cash expenses 11,450
Depreciation 18,425
Unreimbursed medical-physicians, therapists, other professionals 4,450
Other medical expenses (e.g., fees, prescription medicines) 5,350
Reimbursements of 2012 medical received in 2012 - 550
State sales taxes paid 466
State income taxes--withheld 2,250
State income taxes-tax due for 2011 paid in 2013 495
California State Disability Income levy withheld 256
State real property taxes paid 1,700
State automobile license paid (registration = $31) 241
Residence interest-purchase money 9,050
Residence interest-home equity loan of $90,000 5,700
Cash charitable contributions 4,500
Contribution of used clothing to Goodwill (fmv = $250), cost 1,150
Contribution of land to SSSU, Aluisa's Alma mater (fmv = $22,000), basis 15,500
Employee business expense 6,025
Investment expenses 475
Tax preparation expense 425
OTHER INFORMATION--Personal and dependency exemptions One
Calculate adjusted gross income and taxable income. Show your work on the extra sheet provided!