Morgan (age 45) is single and provides more than 50% of the support of Rosalyn (a family friend, age 36), Flo (a niece, age 18), and Jerold (a nephew, age 18). Both Rosalyn and Flo live with Morgan, but Jerold (a citizen of France) lives in Canada. Morgan earns a $95,000 salary, contributes $5,000 to a traditional IRA, and receives sales proceeds of $15,000 for an RV that cost $60,000 and was used only for vacations. She has $8,200 in itemized deductions. Solution Note .

1. Morgan (age 45) is single and provides more than 50% of the support of Rosalyn (a family
friend, age 36), Flo (a niece, age 18), and Jerold (a nephew, age 18). Both Rosalyn and Flo live
with Morgan, but Jerold (a citizen of France) lives in Canada. Morgan earns a $95,000 salary,
contributes $5,000 to a traditional IRA, and receives sales proceeds of $15,000 for an RV that
cost $60,000 and was used only for vacations. She has $8,200 in itemized deductions.
Solution
Note
Particulars Amount Deduction Taxable
Salary 95000
Personal exemption
Rosalyn 0
Personal exemption 4000 91000
Jerold 0
Contribution to traditional IRA 0
Itemized Deduction 8200 -8200
99200
Loss on sale of RV (60000-15000) -45000