Question

Gross salary $41,780
Interest earnings $225
Dividend income $80
One person exemption $2,650
Itemized deductions $3,890
Adjustments to income $1,150

What would be reported as taxable income?

Would I be correct in thinking that the only thing to be reported as taxable income would be the gross salary of $41,780?



Thanks in advance for your help!

Answer 1

Taxable income is the gross salary, interest earnings, dividend income, and adjustments to income.

Answer 2

From your taxable income, you subtract your exemption and itemized deductions.

Answer 3

Thanks so much for breaking this down for me =]

Answer 4

You're welcome.

Answer 5

Quadrant, Inc. is a former C Corporation whose first S corporation year began on January 1, 2009. At that time, Quadrant had two assets: x, with a value of $1,000 and a basis of $400; and Y, with a value of $400 and a basis of $600. The net unrealized built in gain as of January 1, 2009 is $400 (i.e., X's $600 gain less Y's $200 loss) Asset X is sold for $1,200 during 2009, and asset Y is retained. The recognized built in gain in 2009 is