Bonnie and Jake (ages 35 and 36, respectively) are married

Bonnie and Jake (ages 35 and 36, respectively) are married with no dependents and live in Montana (not a community property state). Because Jake has large medical expenses, they seek your advice about filing separately to save taxes. Their income and expenses for 2018 are as follows:

Bonnie's salary ...............................................................................$ 42,500
Jake's salary .......................................................................................26,000
Interest income (joint) ........................................................................1,500
Rental loss from actively managed rental property ...................(23,000)
Jake's unreimbursed medical expenses .........................................8,500
All other itemized deductions:*

Bonnie ........................................................................................19,000
Jake ...............................................................................................6,400

None subject to limitations

Determine whether Bonnie and Jake should file jointly or separately for 2018.

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