Kate Is Single and a Homeowner

question 102

Essay

Kate is single and a homeowner.In 2016,she has property taxes on her home of $3,000,makes charitable contributions of $2,000,and pays home mortgage interest of $7,000.Kate's adjusted gross income for 2016 is $77,000.
Required: Compute her taxable income for 2016.

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Definitions:

Equity

The value of an ownership interest in property, including shareholders' equity in a corporation, representing assets minus liabilities.

Venture Capitalists

Individuals who make large investments in new ventures in return for an equity stake in the business.

Management Role

Refers to the functions and responsibilities assigned to managers, including planning, organizing, leading, and controlling.

Entrepreneurship

The process of designing, launching, and running a new business, typically starting as a small business, such as a startup.