Dawn, a single, cash-method taxpayer, paid the following taxes in the current year: Dawn's employer withheld $5,400

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Dawn, a single, cash-method taxpayer, paid the following taxes in the current year: Dawn's employer withheld $5,400 for federal income taxes, $2,000 for state income taxes, and $3,800 for RCA from her paychecks. Dawn purchased a new car and paid $600 in sales tax and $70 for the license. The car's FMV was $20,000 and it weighed 3,000 pounds. The county also assessed a property tax on the car. The tax was 2% of the car's value and $10 per hundredweight. Dawn uses the car 100% of the time for personal purposes. Dawn sold her house on April 15 of the current year. The county's property tax on the home for the year is $1,850, payable on February 1 of the current year. The county's real property tax year is the calendar year. Dawn's AGI for the year is $50,000 and her other itemized deductions exclusive of taxes are $8,000 (disregard any leap year). a. What is Dawn's deduction for taxes in the current year? b. Where should Dawn report her deduction for the taxes on her tax return?

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Related Book For  answer-question

Federal Taxation 2020 Comprehensive

ISBN: 9780135196274

33rd Edition

Authors: Timothy J. Rupert, Kenneth E. Anderson, David S. Hulse

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