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?

J borrowed money to buy Birmingham, AL, municipal bonds. This year he paid $2,000 of interest on the loan, and earned $3,500 interest income from the bonds. $2,000 of the interest qualifies to be deducted this year as investment interest expense.

In 2020, Amanda, age 32, reports Schedule C income = $70,000 and self-employment tax = $9,891. What is the maximum amount she may contribute to a qualified Keogh self-employed retirement plan?

Tracy paid the following taxes this year: Federal income tax $12,034 Employee payroll tax (FICA and Medicare) $4,590 State income tax $5,725 State and local sales tax $2,998 Local property tax on personal residence $3,300 What is Tracy’s itemized deduction for taxes?

Gains realized on the sale of personal use assets are generally taxable.

Mr. and Mrs. Darwin sold their principal residence on September 12, 2019, and purchased and moved into a new residence three weeks later. They excluded their $353,000 gain realized on this sale from gross income. On October 2, 2020, the Darwins realized a gain on sale of the new residence. Which of the following statements about this second gain is true?