EXAMPLE: Jerome paid the following taxes during the current year: Real estate taxes on personal residence. Real estate taxes on land held for investment $4,500 $1,800 State income taxes $6,200 Hunting license $75 Real estate taxed on vacation home in Germany $3,000 Federal income tax $16,000 Tax on personal use automobile $500 Local assessment for sewer line $800 How much can he deduct as an itemized deduction if he files as MFJ