Problem:
Myles, single, age 31, had the following items for 2014:
• Salary $50,000
• Non business bad debt (6,000)
• Casualties-independent events: Asset A (personal use property held for two years)-gain $3,000
• Securities (stolen)-loss (8,000)
• Dividends $2,000
• Interest expense on personal residence $10,000
Required:
Question: Compute Myles' taxable income for 2014.
Note: Please provide reasons to support your answer.