Question

Amy paid the following taxes during the year:

Taxes on residence (for the period from March 1 through August 31) = $6,250
State motor vehicle tax (based on the value of the personal use automobile) = 630
State income tax = 4,050
State and local sales taxes = 4,500
Amy sold her personal residence on June 30, under an agreement in which the real estate taxes were not prorated between the buyer and the seller. What amount qualifies as a deduction from AGI for Amy?
a.$4.680
b.$9,240
c.$6,250
d.$8,050
e.$0

Answer 1

The correct answer is (c).

Step-by-step explanation:

Amy can deduct the real estate taxes on her personal residence, which is $6,250 for the period from March 1 through August 31. Therefore, the amount that qualifies as a deduction from AGI for Amy is $6,250.

Answer 2

The amount that qualifies as a deduction from AGI for Amy is $6,250.

Step-by-step explanation:

The amount qualifies as a deduction from AGI for Amy is $6,250 (option c).

When Amy sold her personal residence on June 30, the real estate taxes were not prorated between the buyer and the seller, meaning that Amy paid the full amount of the taxes for the period from March 1 through August 31. Therefore, the taxes on residence amounting to $6,250 can be deducted from her Adjusted Gross Income (AGI).