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

Answer:

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

Answer 2

Answer:

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.