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29 September, 15:18

Ed is single with no dependents. He has receipts for the expenses listed below that he paid in 2019. His AGI is $60,000. What are his total itemized deductions for 2019?• $8,000 in unreimbursed medical expenses • $5,400 in state and local income taxes • $6,000 in real estate taxes • $400 in ad valorem personal property taxes • $4,300 in mortgage interest • $1,800 in interest from a home equity loan used to pay credit card debt • $2,000 in charitable contributions • $600 in dues to professional organizations • $180 for a safe deposit box rental • $200 for subscriptions to professional journals • $225 in tax preparation fees • $1,000 in union dues A. $16,300 B. $18,300 C. $20,100 D. $21,105

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Answers (2)
  1. 29 September, 15:30
    0
    B. $18,300

    Explanation:

    Particulars Amount (in $)

    Deduction for unreimbursed medical expeses 2,000

    State and local taxes 10,000

    Mortgage interest 4,300

    Credit card debt -

    Charitable contributions 2,000

    Professional organizations -

    Safe & deposit box rental -

    Subscriptions -

    Tax preparation fees -

    Union dues -

    18,300

    AGI 60000

    10% of AGI 6000

    unreimbursed medical expeses 8000

    Deduction for unreimbursed medical expeses 2000

    Working Note 2

    State and local taxes 5400

    Real estate taxes 6000

    Personal property taxes 400

    Total 11800

    Limited to 10000

    Therefore, The answer is $18,300
  2. 29 September, 15:32
    0
    19,800

    Explanation:

    ... because the 10% threshold for medical allowances until 2020. In 2019 it was 7.5% which makes the medical deduction $3500 instead of $2000.
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