Charles has AGI of $50,000 and has made the following payments related to (1) land he inherited from his deceased aunt and (2) a personal vacation taken last year. Calculate the amount of taxes Charles may include in his itemized deductions for the year under the following circumstances:
State inheritance tax on the land ...................................................... $1,200
County real estate tax on the land ....................................................... 1,500
School district tax on the land ............................................................ 690
City special assessment on the land (new curbs and gutters) ......................... 700
State tax on airline tickets (paid on vacation) ........................................... 125
Local hotel tax (paid during vacation) .................................................... 195
a. Suppose that Charles holds the land for appreciation.
b. Suppose that Charles holds the land for rent.
c. Suppose that the vacation was actually a business trip.