Reference no: EM131489676
Straightforward US tax accounting question.
P is an unmarried full-time investor with no depend cuts. Her income for the year 2016 is as follows:
Taxable interest income ................................................................. 525.900
Excludable municipal bond interest .............................. 8,600
Qualifying dividends ............................................... 11,650
Consulting fees ....................................................... 6,400
Social Security benefits ............................................. 8,400
Although P does not have sufficient deductions to itemize, her records reveal the following:
Investment expenses ........................................$850
Expenses related to consulting .........................1,200
In addition to the above. P recognized the following gains and losses during the year:
Loss on sale of 100 shares of A. Inc., held three years 5(1,200)
Loss on sale of personal automobile (1,800)
Sales price of 100 shares of 8 Corp. sold short 8,200
(This short sale was closed the following year with newly purchased shares costing $9,600. P owned no 8 Corp. stock at the time of the short sale.)
Gain on sale of unimproved land held as an investment for six years 45,000
Calculate P's adjusted gross income and taxable income.