Larry,a calendar year cash basis taxpayer,has the following transactions: Based on this information,Larry has:

Question

Larry,a calendar year cash basis taxpayer,has the following transactions:  Based on this information,Larry has:

Quizplus · Accepted Answer

Larry's income is calculated as follows:

Salary income: $50,000
Capital gain: $1,000
Interest income: $500

Total income = $50,000 + $1,000 + $500 = $51,000

Larry cannot claim a deduction for medical expenses because his total medical expenses ($3,500) do not exceed 10% of his AGI ($51,000 x 10% = $5,100).

Larry,a Calendar Year Cash Basis Taxpayer,has the Following Transactions