1. Avery earns $75,000 as a professor. At Pace University. In addition, she earns $135,000 from her consulting practice that she owns. The 135,000 is considered self-employment income. During the year she also earned $25,000 of long-term capital gains, $12,000 of interest income, $14,000 of dividend income and incurred a $6,000 loss on the sale of her car that was used for personal purposes. She had no other items of income or expense relevant for tax purposes. How much FICA will Avery have to pay for the year? How much net investment income tax will she have to pay?
1. Avery earns $75,000 as a professor. At Pace University. In addition, she earns $135,000 from her consulting practice that she owns. The 135,000 is considered self-employment income. During the year she also earned $25,000 of long-term capital gains, $12,000 of interest income, $14,000 of dividend income and incurred a $6,000 loss on the sale of her car that was used for personal purposes. She had no other items of income or expense relevant for tax purposes. How much FICA will Avery have to pay for the year? How much net investment income tax will she have to pay?
Chapter11: Invest Or Losses
Section: Chapter Questions
Problem 39P
Related questions
Question
Ac
Please answer fast
Transcribed Image Text:1. Avery earns $75,000 as a professor. At Pace University. In addition, she earns
$135,000 from her consulting practice that she owns. The 135,000 is
considered self-employment income. During the year she also earned $25,000
of long-term capital gains, $12,000 of interest income, $14,000 of dividend
income and incurred a $6,000 loss on the sale of her car that was used for
personal purposes. She had no other items of income or expense relevant for
tax purposes. How much FICA will Avery have to pay for the year? How much
net investment income tax will she have to pay?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT