Question

(6.55) During the current year, Robert pays the following amounts associated with his own residence: Property taxes $3,000 Mortgage interest 8,000 Repairs 1,200 Utilities 2,700 Replacement of roof 4,000 In addition, Robert paid $1,500 of property taxes on the home that is owned and used by Anne, his daughter. a.Which of these expenses can Robert deduct? b.Can Anne deduct the $1,500 of property taxes? c.Are the deductions for AGI or from AGI (itemized)? d.How could the tax consequences be improved? Summarize your recommendation.

Answer 1

Answer: See explanation

Step-by-step explanation:

a. Which of these expenses can Robert deduct?

From the question, the deductible expenses will include the property taxes and the mortgage interest.

b.Can Anne deduct the $1,500 of property taxes?

Anne cannot deduct the $1,500 of property taxes because the $1500 has already been paid by Robert who is his father.

c.Are the deductions for AGI or from AGI (itemized)?

The deductions are from AGI itemized.

d.How could the tax consequences be improved?

The tax consequences be improved when a cash gift is given to Anne by his father Robert and then pay for her expenses.