A single taxpayer earns $500,000 of salary income and $20,000 of interest income in 2019. The 15) __ _taxpayer is a material participant in the partnership. His share of the partnership's loss for the yearis $300,000. The taxpayer will report AGI of

Question

Business

Kamren Hartman

10 July, 14:45

A single taxpayer earns $500,000 of salary income and $20,000 of interest income in 2019. The 15) __ _taxpayer is a material participant in the partnership. His share of the partnership's loss for the yearis $300,000. The taxpayer will report AGI of

+3

Answers (1)

Know the Answer?

Lucia Drake · Answer 1

AGI = 220,000$

Explanation:

AGI or adjusted gross income is a measurement of person's total income that is taxable. After all costs and expenses are taken from yearly income adjusted for any possible other gains like unemployment compensation or dividends, the rest is adjusted gross income, which is taxable. In this example, persons total income is yearly income + interest income, which is equal to 520,000 dollars. Since his losses as a consequence of his stake at a partnership at a given year are 300,000 dollars, his AGI is 220,000 dollars.