Liz, who is single, lives in a single family home and owns a second single family home that she rented for the entire year at a fair rental rate. Liz had the following items of income and expense during the current year. Income:
Expenses:
What is her adjusted gross income for the year?

Question

Liz, who is single, lives in a single family home and owns a second single family home that she rented for the entire year at a fair rental rate. Liz had the following items of income and expense during the current year. Income:
 Expenses:
 What is her adjusted gross income for the year?

Quizplus · Accepted Answer

Liz's rental income ($20,000) and salary income ($45,000) give her a total income of $65,000. She can deduct her rental expenses ($6,800) and standard deduction ($6,000) to arrive at an adjusted gross income of $62,200.

Liz, Who Is Single, Lives in a Single Family Home