How do I determine my adjusted gross income?

Question

I'm going to be renting tax credit housing (government subsidized) for low income individuals. In order to get approved, I need to show that my AGI is below a certain number.

If my wages are $50,000 year and I loose $20,000 a year in my side business (an LLC company) - would my AGI be $30,000 or would my business losses not affect AGI? Would my stock market losses reduce AGI?

January - July 2007 I am unemployed with a negative income (business losses, no wages). July 2007 is when I start the new job right out of college...however I have no job security because who knows how it will go.

My AGI for all of 2006 was just slightly over $11,000.

And we're talking about an area where a one bedroom market rate goes for $1000-1300/month. I do think I need subsidized housing.

Let's be clear here - subsidized housing means $700/month rent for a small 1 bedroom that is 25 miles from my work place when gas is $3.00 gallon and the commute time will be 1.5-2 hours due to terrible traffic.

Answer 1

you AGI is on line 37 of your 1040 when you filed your taxes.

Good Luck!

Answer 2

You don't sound exactly low income to me - you might or might not qualify under guidelines, but there are likely a lot of people on the waiting list with much lower income.

Yes your loss in your side business would subtract from your $50K wages. You can subtract up to $3000 per year of stock losses - any additional losses would be carried over to the following year(s).

If you're losing that much regularly from your side business, the IRS will be knocking on your door at some point, and might disallow the losses.

For your AGI, look at the last line on the front page of your 1040 for the most recent year - the most recent year is probably what the housing authority will want to see anyway.

Answer 3

It really depends on where you live. The guidlines are different for each state. I am not 100% positive but usually losses from LLC do not effect your personal taxes. The whole advantage of a LLC is like the name says. Its a limited lilability corp. A sub S corp losses effects the officers involved directly with a schedule K form. Last time I looked at the housing guide lines in NY they took your gross income not your adjusted. If that were the case everyone would start a small business and have losses so they could qualify. In many cases subsidized housing has to be paid back or has a time limit on it unless your totally on public assistance.

Answer 4

If you have a 20,000 loss on your business and you file 1040 schedule C and SE, then yes your AGI would be 30K. Plus you can deduct any contributions to an IRA and interest on student loans if you had any.

Answer 5

Your AGI would be your wages, less business loss, less capital losses. All hypothetical.

However, you haven't got an AGI for 2007, so your housing authority will see the 2006 figure and ask for your current earned income.

Answer 6

Even after subtracting the loss from your side business, you make more than I do. I don't qualify for subsidized housing, why should you? The median income in the US is $40,000. Your 'additional information' says you "need" subsidized housing. What you need is to spend less than you earn. If you can't live on the income you claim in your question, you can't live on a multi-million dollar income.

Answer 7

If you make 50k a year...you don't belong in subsidized housing.

That is for people who really are in a bind and their lack of education keeps them from making real money. You are making more than enough to afford housing on your own.