In 2017, Tom Is Single and Has AGI of $50,000

question 28

Essay

In 2017, Tom is single and has AGI of $50,000. He is age 70, has no dependents, and has itemized deductions (i.e., from AGI) of $7,000. Determine Tom's taxable income for 2017.

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Definitions:

De Facto Corporation

A business that operates as if it were a corporation although it has not completed the formalities required for legal incorporation.

Organization Meeting

An initial meeting held to complete the formation of an entity, where bylaws are adopted, officers elected, and other organizational matters decided.

Corporate Powers

The legal rights and authorities that a corporation possesses, including entering contracts, owning property, and conducting business activities.

Transfer Restriction

Legal limitations or conditions placed on the transferability of an asset or security.