Problem 10-43 (LO. 2, 3, 4, 5, 6, 7, 8) Linda, who files as a single taxpayer, h

Question

Problem 10-43 (LO. 2, 3, 4, 5, 6, 7, 8) Linda, who files as a single taxpayer, had AGI of $280,000 for 2017. She incurred the following expenses and losses during the year: Medical expenses (before the 10%-of-AGI limitation) State and local income taxes State sales tax Real estate taxes Home mortgage interest Automobile loan interest Credit card interest Charitable contributions Casualty loss (before 10% limitation but after $100 floor) Unreimbursed employee expenses subject to the 2%-of-AGI limitation 7,600 $33,000 4,500 1,300 4,000 5,000 750 1,000 7,000 34,000 Linda's total itemized deductions before any phaseout are 33,500 Linda's total itemized deduction is Feedback

Explanation / Answer

State and local income taxes $4500 Real estate taxes 4000 Home mortgage interest 5000 Charitable contributions 7000 Unreimbursed employee expenses 2000 [($7600 (2% × $280000)] Total $22500 Reduction equals the lesser of the following: [3% × ($280,000 AGI $258,250)] $653 Amount of reduction (653) Deductible itemized deductions subject to overall limitation $21847 Itemized deductions not subject to overall limitation: Medical expenses 5000 Casualty loss 6000 Total itemized deductions $32847

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