Bonnie and Jake (ages 35 and 36, respectively) are married with no dependents and live in Montana (not a community property state). Because Jake has large medical expenses, they seek your advice about filing separately to save taxes. Their income and expenses for 2013 are as follows:
Bonnie's salary.....................................................$ 42,500
Jake's salary..........................................................26,000
Interest income (joint).........................................................1,500
Rental loss from actively managed rental property ..........(23,000)
Jake's unreimbursed medical expenses........................... 8,500
All other itemized deductions:*
Bonnie...................................................................9,000
Jake .....................................................................3,400
*None subject to limitations
Determine whether Bonnie and Jake should file jointly or separately for 2013.