Thelma works at a liquor store in 2014 and makes $45,000. She also has dividend income of $12,000 and interest income of $1,000. She owns a beach house that gives her $11,000 in net rental income and she owns a stake in a limited partnership that generates a $15,000 loss. What is her adjusted gross income in 2014?

Question

Quizplus · Accepted Answer

Adjusted gross income (AGI) is calculated by taking Thelma's total income and subtracting any allowable deductions. Her total income is $45,000 (salary) + $12,000 (dividends) + $1,000 (interest) + $11,000 (rental income) = $69,000. Her only allowable deduction is the $15,000 loss from her limited partnership, so her AGI is $69,000 - $15,000 = $54,000.

Thelma Works at a Liquor Store in 2014 and Makes