Alex is single and has no dependents. He is self-employed and his gross income is $150,000. He pays $10,000 for medical insurance for himself. He also incurs $40,000 in doctor bills during the year that are not covered by his insurance. And he donates $12,000 to charity. (Pretend there are no other deductions - no QBI deduction and no deduction for self- employment taxes.) Taking into account the 10%-of-AGI floor that applies to medical expenses, what is Alex's taxable income? O $88.000. O $102.000. $103.000. $137,600.
Alex is single and has no dependents. He is self-employed and his gross income is $150,000. He pays $10,000 for medical insurance for himself. He also incurs $40,000 in doctor bills during the year that are not covered by his insurance. And he donates $12,000 to charity. (Pretend there are no other deductions - no QBI deduction and no deduction for self- employment taxes.) Taking into account the 10%-of-AGI floor that applies to medical expenses, what is Alex's taxable income? O $88.000. O $102.000. $103.000. $137,600.
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 40P
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Transcribed Image Text:Alex is single and has no dependents. He is self-employed and his gross income is $150,000. He pays $10,000 for medical
insurance for himself. He also incurs $40,000 in doctor bills during the year that are not covered by his insurance. And he
donates $12,000 to charity. (Pretend there are no other deductions -- no QBI deduction and no deduction for self-
employment taxes.) Taking into account the 10%-of-AGI floor that applies to medical expenses, what is Alex's taxable
income?
$88,000.
O $102.000.
$103.000.
$137,600.
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