Mr. and Mrs. Nelson operate a small business as a sole proprietorship. This year, they have the following tax information. $\begin{array}{llr}
\text { Net profit from sole proprietorship } &\$50,000\
\text { Deduction for $ \mathrm{SE} $ tax } &\$3,533\
\text { Dividends } &\$900\
\text { Net income from rental property } &\$2,780\
\text {Loss from limited partnership } &\$(6,000)\
\end{array}$
Compute Mr. and Mrs. Nelson's AGI.

Question

Mr. and Mrs. Nelson operate a small business as a sole proprietorship. This year, they have the following tax information. $\begin{array}{llr}
  \text { Net profit from sole proprietorship } &\$50,000\
 \text { Deduction for $ \mathrm{SE} $ tax } &\$3,533\
 \text { Dividends } &\$900\
 \text { Net income from rental property } &\$2,780\
 \text {Loss from limited partnership  } &\$(6,000)\
\end{array}$
 Compute Mr. and Mrs. Nelson's AGI.

Quizplus · Accepted Answer

AGI is calculated as: Net profit from sole proprietorship ($50,000) - Deduction for SE tax ($3,533) + Dividends ($900) + Net income from rental property ($2,780) - Loss from limited partnership ($6,000) = $47,367.

Mr and Mrs Compute Mr