Alex, single, earns wags of $42,000 in 2026. He also conducts an activity that produces the following revenues and expenses:Revenues$18,000ExpensesProperty taxes3,000Materials and supplies 4,500Utilities2,000Advertising5,000Insurance750Cost Recovery8,000Alex also pays mortgage interest during the year of $8000. Assume Congress passes no new tax laws between 2021 and 2026 and that there are norelevant inflation adjustments after 2021.1. Assuming the activity is a business, Alex' 2026 AGI is $ 36750and his taxable.income (ignoring the personal exemption) is $2. Assuming the activity is NOT a business, Alex' 2026 AGI is s 60000land his taxable Income (ignoring the personal exemption) is $35200

Alex, single, earns wags of $42,000 in 2026. He also conducts an activity that produces the following revenues and expenses: Revenues $18,000 Expenses Property taxes 3,000 Materials and supplies 4,500 Utilities 2,000 Advertising 5,000 Insurance 750 Cost Recovery 8,000

Alex, single, earns wags of $42,000 in 2026. He also conducts an activity that produces the following revenues and expenses: Revenues $18,000 Expenses Property taxes 3,000 Materials and supplies 4,500 Utilities 2,000 Advertising 5,000 Insurance 750 Cost Recovery 8,000

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter12: Alternative Minimum Tax

Section: Chapter Questions

Problem 24CE

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Question

100%

Alex, single, earns wags of $42,000 in 2026. He also conducts an activity that produces the following revenues and expenses:
Revenues
$18,000
Expenses
Property taxes
3,000
Materials and supplies 4,500
Utilities
2,000
Advertising
5,000
Insurance
750
Cost Recovery
8,000
Alex also pays mortgage interest during the year of $8000. Assume Congress passes no new tax laws between 2021 and 2026 and that there are no
relevant inflation adjustments after 2021.
1. Assuming the activity is a business, Alex' 2026 AGI is $ 36750
and his taxable.income (ignoring the personal exemption) is $
2. Assuming the activity is NOT a business, Alex' 2026 AGI is s 60000
land his taxable Income (ignoring the personal exemption) is $
35200

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