Mia is a single taxpayer with projected AGI of $275,000 in 2017.She is considering selling a long-term investment before year-end.She expects to realize a gain of $25,000.If Mia sells the investment by December 31,her 2017 taxable income will increase by $25,000.

Question

Quizplus · Accepted Answer

The recognition of the gain will cause Mia's AGI to exceed the threshold for both the personal exemption and itemized deduction phase-outs so her taxable income will increase by more than $25,000.

Mia Is a Single Taxpayer with Projected AGI of $275,000