QUESTION TWO $($SEVEN POINTS$)$

Hugh, a cash basis, self$-$employed individual, paid the following amounts during $2024$;

Real estate tax on lowa residenceState income tax

Real estate taxes on a vacation home

Gift tax paid on gift to daughter

State sales taxes

State occupational license fee

Property tax on value of his automobile $($used $100\%$ for business$)$$$3,800$

$1,900$

$2,100$

$1,200$

$1,750$

$300$

$475$

What is the maximum amount Hugh can claim as taxes in itemizing deductions from AGI? How would your answer change if Hugh had paid $$4,900$ in state income taxes?