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Spencer Strasmore engages in the following transactions in 2020:

• Receives wages paid in cash of $50,000
• In addition to his wages, his employer paid health insurance premiums on his behalf totaling $15,000
• His employer also contributed $10,000 to a 401(k) on his behalf. He also elected to have $10,000 of his wages contributed to the 401(k) (these wages are not included in the $50,000 listed above).
• Spencer received a statement from his 401(k) account stating there was a $2,000 capital gain in the current year that resulted from the sale of a mutual fund held in the 401(k) account. He did not receive any distributions from the account.
• Spencer also has a side business that does consulting. In the current year he provided consulting services for a friend and since his friend was low on cash they agreed that the friend would pay him by painting his house. The FMV of the painting is $8,000.
• Receives municipal bond interest from the city of West Lafayette bonds of $5,000
• Spencer owns stock in Microsoft and the value of the stock increased from $4,000 to $6,000 during 2020. He did not sell any of the stock.
• He received a gift from his grandma of $10,000.
• Spencer owns a 20% interest in a LLC (taxed as a partnership). He received a Schedule K-1 from the partnership indicating that his share of the LLC income was $8,000 of ordinary income and $2,000 of 0/15/20 long-term capital gain income.
• He purchased 100 shares HP stock in 2012 for $2,000 and sold the stock for $1,000 on June 12, 2020. He also purchased 200 shares of HP on June 15, 2020 for $1,200.
• In June 2020, he received a refund of $900 of state income taxes he paid last year. He had itemized deductions of $13,590 in 2019 (assume the standard deduction was $12,200) including state income taxes paid of $1,750.
• He sold Disney stock for $10,000 on April 15, 2020 that he originally purchased on February 13, 2015 for $16,000.

Calculate Spencers gross income for 2020.

Item	Amount included in Gross Income
Wages
Health insurance premiums
401(k) contributions
Gain in 401(k)
Consulting
Muni Bond
Microsoft stock
Gift
LLC
State tax refund
Net capital gain (loss) (show calculation below)
Gross Income

Net capital gain (loss):

Other Calculations:

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