Jake is a​ single, self-employed individual who owns his own business. During 2016 JakeJake

Jake is a​ single, self-employed individual who owns his own business. During 2016 JakeJake reported $240,000 gross income and $75,000 expenses from his business. He also paid $28,000 in alimony to his former​ spouse, $4,600 mortgage interest on his personal​ home, $7,500 for health insurance​ premiums, and $2,400 for medicine and doctors. Ignoring any​ self-employment tax on the business​ income, what is Jake​'s AGI for 2016?






Why is the distinction between deductions for AGI and deductions from AGI important for​ individuals?


QI:6-2
Sam owns a small house that he rents out to students attending the local university. Are the expenses associated with the rental unit deductions for or from ​AGI?


QI:6-3
During the​ year, Sara sold a capital asset at a loss of​ $2,000. She had held the asset as an investment. This is the only capital asset she sold during the year. Is her deduction for this capital loss a deduction for or a deduction from ​AGI?