Question: 37. instructions : Choose the best multiple choice answer and explain why you chose the answer. MUST provide 2-3 sentence brief explanation and show all

37. instructions : Choose the best multiple choice answer and explain why you chose the answer. MUST provide 2-3 sentence brief explanation and show all work. All sources must be noted.

____ 37. During 2016, Pugh, a self-employed individual, paid the following amounts:

Real estate tax on Georgia residence

$3,900

State income tax

1,500

Real estate taxes on land in Florida (held as an investment)

1,200

Gift tax paid on gift to daughter

1,300

State sales taxes

1,750

State occupational license fee

400

Property tax on value of his car (used 80% for business)

185

What is the maximum amount Pugh can claim as taxes in itemizing deductions from AGI?

a.

$6,600.

b.

$6,650.

c.

$6,850.

d.

$8,625.

e.

None of the above.

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