Problem 6-54 (LO. 1, 3, 4)

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
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. Classify the following expenses for Robert as "Deductible" or "Nondeductible".

Property taxes - Robert		DeductibleNondeductible
Property taxes - Anne		DeductibleNondeductible
Mortgage interest		DeductibleNondeductible
Repairs		DeductibleNondeductible
Utilities		DeductibleNondeductible
Replacement of roof		DeductibleNondeductible

Enter Robert's total deductions without regard for any limitations. $fill in the blank 20b11d03d01f034_7

b. Can Anne deduct the $1,500 of property taxes?

ProbablyProbably not

c. If deductible, are the deductions for AGI or from AGI (itemized)?

for AGIfrom AGI

d. Indicate whether each of the following is "True" or "False" regarding how the tax consequences could be improved.

There is nothing that can be done to improve the tax consequences.	TrueFalse
Robert can make a cash gift to Anne, who could then pay for her expenses.	TrueFalse
If Robert can claim Anne as a dependent, he can deduct her expenses.	TrueFalse