Chee, single, age 40, had the following income and expenses during the year (not a leap year):
|
Income |
|
|
Salary |
$43,000 |
|
Rental of vacation home (rented 60 days, used |
|
|
personally 60 days, vacant 245 days) |
4,000 |
|
Municipal bond interest |
2,000 |
|
Dividend from General Electric |
400 |
|
Expenses |
|
|
Interest on home mortgage |
8,400 |
|
Interest on vacation home |
4,758 |
|
Interest on loan used to buy municipal bonds |
3,100 |
|
Property tax on home |
2,200 |
|
Property tax on vacation home |
1,098 |
|
State income tax |
3,300 |
|
State sales tax |
900 |
|
Charitable contributions |
1,100 |
|
Tax return preparation fee |
300 |
|
Utilities and maintenance on vacation home |
2,600 |
|
Depreciation on rental 50% of vacation home |
3,500 |
Calculate Chee’s taxable income for the year before personal exemptions.