Problem - Passive Losses
In 2010, Julie, a single individual, reported the following items of income and deduction:
Salary $166,000
Interest income $14,000
Long-term capital gain from sales of stock $22,000
Short-term capital losses from sales of stock ($17,000)
Loss from a passive rental real estate activity ($20,000)
Interest expense on loan to purchase stock ($21,000)
Qualified residence interest on residence ($12,000)
Charitable contributions ($8,000)
Property taxes on residence ($5,000)
Tax return preparation fees ($2,500)
Unreimbursed employee business expenses ($2,000)
Julie owns 100% and is an active participant in the rental real estate activity.
What is Julie's taxable income in 2010?
Textbook: Thomas R. Pope, K. E. Prentice Hall's Federal Taxation, 2011 Edition. Prentice Hall.