John and May are married with two dependent children, file a joint return. They
ID: 2578917 • Letter: J
Question
John and May are married with two dependent children, file a joint return. They provide you with the following information:
Medical and dental expenses (not reimbursed)
$ 3,650
State income taxes
3,950
Real estate taxes
4,710
Personal property taxes (ad valorem)
325
Interest on home mortgage
17,800
Form 4952 shows deductible investment interest
800
Charitable contributions (made by cash or check)
2,000
Form 4684 shows a casualty loss deduction
600
AGI
188,850
What is the total amount of John and May’s itemized deductions?
Medical and dental expenses (not reimbursed)
$ 3,650
State income taxes
3,950
Real estate taxes
4,710
Personal property taxes (ad valorem)
325
Interest on home mortgage
17,800
Form 4952 shows deductible investment interest
800
Charitable contributions (made by cash or check)
2,000
Form 4684 shows a casualty loss deduction
600
AGI
188,850
Explanation / Answer
Total amount of itemized deductions :
Medical and dental expenses (not reimbursed) 3650
State income taxes
3,950
Real estate taxes
4,710
Personal property taxes (ad valorem)
325
Interest on home mortgage
17,800
Form 4952 shows deductible investment interest
800
Charitable contributions (made by cash or check)
2,000
total amount = $33,235
NOTE : casuality loss deduction can be claimed only when amount exceeds 10% of AGI . hence not allowed in this case
Total amount of itemized deductions :
Medical and dental expenses (not reimbursed) 3650
State income taxes
3,950
Real estate taxes
4,710
Personal property taxes (ad valorem)
325
Interest on home mortgage
17,800
Form 4952 shows deductible investment interest
800
Charitable contributions (made by cash or check)
2,000
total amount = $33,235
NOTE : casuality loss deduction can be claimed only when amount exceeds 10% of AGI . hence not allowed in this case
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