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

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The taxpayer's AGI is calculated by taking the salary income ($500,000) and interest income ($20,000), totaling $520,000, and then subtracting the partnership loss ($300,000) because the taxpayer is a material participant. This results in an AGI of $220,000.

A Single Taxpayer Earns $500,000 of Salary Income and $20,000