Carl, a physician, earns $200,000 from his medical practice in the current year.He receives $45,000 in dividends and interest during the year as well as $5,000 of income from a passive activity.In addition, he incurs a loss of $50,000 from an investment in a passive activity.What is Carl's AGI for the current year after considering the passive investment?

Question

Quizplus · Accepted Answer

Carl's AGI is calculated by adding his medical practice income ($200,000) and dividends and interest ($45,000), totaling $245,000. Passive activity losses cannot offset non-passive income, so the $50,000 passive loss does not reduce his AGI.

Carl, a Physician, Earns $200,000 from His Medical Practice in the Current