David, who is divorced and age 58, had AGI of $400,000 during 2017. He incurred

Question

David, who is divorced and age 58, had AGI of $400,000 during 2017. He incurred during the year the following: Medical expenses before 10%-of-AGI floor State and local income taxes Real estate taxes Home mortgage interest Charitable contribution:s Casualty loss before 10% limitation (after $100 floor) Unreimbursed employee expenses subject to 2%-of-AGI limitation Gambling losses (David had $7,400 of gambling income) S39,500 5,200 4,400 5,400 4,800 47,000 8,900 9,800 Compute David's total itemized deductions for the year.

Explanation / Answer

David's Itemised deductions before overall limitation for year 2017-

David's Itemised deductions after overall limitation for year 2017-

Items Calculation Amount Medical Exp 39500 - (400000 x 10%) $                 -   State & Local Income Tax $    5,200.00 Real Estate Tax $    4,400.00 Home mortgage interest $    5,400.00 Charitable Contribution $    4,800.00 Casualty Loss 47000 - (400000 x 10%) $    7,000.00 Unreimbursed employee Exp 8900 - (400000 x 2%) $        900.00 Glambling losses $    7,400.00 TOTAL ITEMIZED DEDUCTION $ 35,100.00

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