Question

For the calendar year 2019, Jon and Betty Hansen (ages 59 and 60) file a joint return reflecting AGI of $280,000. They incur the following expenditures:

Medical expenses before 10% of AGI floor	$30,000
Casualty loss caused by an electrical fire in their home	30,000
Interest on home mortgage	11,000
Interest on credit cards	800
Property taxes on house	13,000
Charitable contributions	17,000
State income tax	15,000
Tax return preparation fees	1,200
What is the amount of itemized deductions the Hansens may claim for 2019?

Answer 1

ANSWER

Particulars	Amount	Itemized Deduction
Medical Expenses Before AGI Floor	$30,000
Less: 10 % of AGI (280000)	-$28,000	$2,000
Casuality Loss	$30,000
Less:	-$100
Less: 280000*10%	-$28,000	$1,900
Interest on Home Mortgage	$10,000	$10,000
Property Taxes on Home	$13,000	$13,000
Charitable Contribution: (limited upto 50% of AGI)	$17,000	$17,000
State Income Tax	$15,000	$15,000
Tax Preparation Fees	$1,200
Less: 2% of AGI (2%*280000) = 5600 Limited to 1200	-$1,200	$0
Itemized Deduction		$58,900

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