Reference no: EM131782115

Problem - Passive Losses

In 2010, Julie, a single individual, reported the following items of income and deduction:

Salary $166,000

Interest income $14,000

Long-term capital gain from sales of stock $22,000

Short-term capital losses from sales of stock ($17,000)

Loss from a passive rental real estate activity ($20,000)

Interest expense on loan to purchase stock ($21,000)

Qualified residence interest on residence ($12,000)

Charitable contributions ($8,000)

Property taxes on residence ($5,000)

Tax return preparation fees ($2,500)

Unreimbursed employee business expenses ($2,000)

Julie owns 100% and is an active participant in the rental real estate activity.

What is Julie's taxable income in 2010?

Textbook: Thomas R. Pope, K. E. Prentice Hall's Federal Taxation, 2011 Edition. Prentice Hall.