In the 2018 tax year, Michelle paid the following amounts relating to her 2016 tax return: Tax

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In the 2018 tax year, Michelle paid the following amounts relating to her 2016 tax return: 

Tax deficiency..........................................................$5,000 

Negligence penalty...................................................1,000 

Interest..........................................................................500 

Underpayment of estimated tax penalty..................350

Which of the above items may be deducted on Michelle’s 2018 individual income tax return? Explain.

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Related Book For  answer-question

Income Tax Fundamentals 2019

ISBN: 9781337703062

37th Edition

Authors: Gerald E. Whittenburg, Steven Gill

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