contestada

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

A) $520,000.
B) $270,000.
C) $220,000.
D) $250,000.

Respuesta :

isiakupatrick

Answer: $220,000

Explanation:Gross Income is the sum total Income an individual makes in a year. Adjusted gross income (AGI) on the other hand, is the measure of Income from one's Gross income used to determine how much of Income is taxable. AGI are adjustments to income, they are expenses incurred by the earner which are deducted before taxing.

Following the numbers given above, the taxpayer’s sum total Income is $500,000+$20,000= $520,000. Since the share of the taxpayer’s loss is $300,000, the taxpayer will report an AGI of $520,000-$300,000=$220,000.