Question

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

Answer 1

19,800

Step-by-step 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.

Answer 2

B. $18,300

Step-by-step 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