Mr. and Mrs. Fowler, both age 60, each make the maximum allowed contribution to their 2020 traditional IRAs. Mr. Fowler is an active participant in his employer’s qualified retirement plan, but Mrs. Fowler is not an active participant in an employer plan. Their AGI before any IRA deduction = $144,900. Compute their AGI.

Terry has $3,000 of gambling winnings and $5,000 of losses. Which of the following statements about his gambling income and losses is true?

Pete owns a sporting goods store as a sole proprietorship. This year, he donated baseball equipment (bats, gloves, balls) to the local YMCA to use in their community sports programs. His cost basis in the inventory items was $45,700, and their retail value was $68,200. Which of the following statements about this donation is true? 

 K received $16,200 child support payments from an ex-spouse.  These payments are excluded from K’s gross income.

Which of the following statements about a individual’s $15,000 net long-term capital loss is true?

Hank owns and actively manages an apartment complex. This year the complex generated a $(40,300) net loss. Hank’s AGI before the loss is $118,200. How much of the loss is deductible this year?

Mr. and Mrs. Fowler, both age 60, each make the maximum allowed contribution to their 2020 traditional IRAs. Mr. Fowler is an active participant in his employer’s qualified retirement plan, but Mrs. Fowler is not an active participant in an employer plan. Their AGI before any IRA deduction = $144,900. Compute their AGI.

In 2018, Ms. Y paid $50,000 for 3,000 shares of a mutual fund. She reinvests year-end dividends in additional shares. In 2018 her reinvested dividend was $4,800 for 240 shares. In 2019 her reinvested dividend was $3,150 for 150 shares. If Ms. Y sells 1,000 of her shares in 2020 for $22 per share and uses the average basis method, what is her recognized gain?

Hank owns and actively manages an apartment complex. This year the complex generated a $(40,300) net loss. Hank’s AGI before the loss is $118,200. How much of the loss is deductible this year?

Oscar has 2020 unreimbursed qualifying medical expenses of $8,360. His AGI is $43,100. What is his allowable medical expense deduction?