Mario and Kaitlin are married and file a joint tax return. They have adjusted gross income of

Question:

Mario and Kaitlin are married and file a joint tax return. They have adjusted gross income of $385,000 that includes $4,700 of investment income ($3,000 short-term capital gains and $1,700 of corporate bond interest). They paid the following expenses for the year:

Unreimbursed medical expenses .........................................................................$26,000
Home mortgage interest on acquisition debt of $1,200,000
(the purchase price was $1,800,000 in 2016) ........................................................36,000
Investment interest expense ....................................................................................5,000
Other investment expenses .....................................................................................1,800
State income taxes .....................................................................................................4,900
Real property taxes ..................................................................................................13,000
Cash contribution to the State University athletic department
booster club (for preferred seating at games) ........................................................3,000
Cash contribution to the State University Business School
student scholarship fund ..........................................................................................2,000
Unreimbursed employee business expenses ........................................................6,600
Tax return preparation fee ..........................................................................................500
What are their itemized deductions for 2018 after applying all limitations?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Taxation For Decision Makers 2019

ISBN: 9781119497288

9th Edition

Authors: Shirley Dennis Escoffier, Karen A. Fortin

Question Posted: