Jackie Chan earns a salary of $10,000,000 and has expenses relating to his job of $220,000.
He has active rental income of $2,000,000 and has expenses relating to active rental income of $1,450,000.
He pays the following taxes: $14,000 sales; $20,000 real estate taxes on his rentals; $35,000 of real estate taxes on his home.
He pays the following interest: $32,000 on his home (4% acquisition debt); $30,000 on his rentals.
What are the tax implications and analysis that result in AGI and taxable income for Jackie? Assume the expenses were reimbursed but in a non accountable plan.