Lawrence Westbrook is a single orthopedic surgeon based in Scottsdale, Arizona, who earns a substantial salary from his hospital employment and additionally operates a private medical consulting practice that generated $134,300 in net business income during 2024. He holds a taxable brokerage account with dividend-paying equities and received $21,500 in long-term capital gains from selling appreciated stock. Lawrence's itemized deductions include $18,400 in mortgage interest on his primary residence, $12,600 in state and local taxes (capped), $6,200 in charitable contributions, and $4,600 in unreimbursed professional expenses deductible under other provisions.
Correct Answers
A G I
$586,600.00
gross Income
$593,700.00
tax Liability
$157,499.75
taxable Income
$544,800.00
refund Or Due Amount
$98,219.75
refund Or Due Direction
Balance Due
Step-by-Step Solution
TAX FORMULA — Lawrence Westbrook (SINGLE) GROSS INCOME Wages: $426,500.00 Interest Income: $7,650.00 Ordinary Dividends: $3,750.00 Business Income: $134,300.00 Capital Gain: $21,500.00 = Gross Income: $593,700.00 − Above-Line Deductions: $7,100.00 = AGI: $586,600.00 DEDUCTIONS Standard Deduction (single): $14,600.00 Itemized Deductions: $41,800.00 Deduction Used: $41,800.00 (itemized) = Taxable Income: $544,800.00 TAX CALCULATION Ordinary Taxable Income: $521,100.00 Ordinary Tax: $152,759.75 LTCG + Qualified Div: $23,700.00 LTCG Tax: $4,740.00 − Credits: $0.00 = Tax Liability: $157,499.75 − Taxes Withheld: $59,280.00 = Tax Due: $98,219.75