Question: During the current year, Robert pays the following amounts associated with his own residence: Property taxes ..................................... $3,000 Mortgage interest ................................... 8,000 Repairs ............................................... 1,200
Property taxes ..................................... $3,000
Mortgage interest ................................... 8,000
Repairs ............................................... 1,200
Utilities .............................................. 2,700
Replacement of roof ............................... 4,000
In addition, Robert paid $1,500 of property taxes on the home that is owned and used by Anne, his daughter.
a. Which of these expenses can Robert deduct?
b. Can Anne deduct the $1,500 of property taxes?
c. Are the deductions for AGI or from AGI (itemized)?
d. How could the tax consequences be improved?
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