Hugh, a self-employed individual, paid the following amounts during the year: Real estate tax on Iowa...

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Hugh, a self-employed individual, paid the following amounts during the year: Real estate tax on Iowa...

Hugh, a self-employed individual, paid the following amounts during the year:

Real estate tax on Iowa residence $3,800

State income tax 1,700

Real estate taxes on a vacation home 2,100

Gift tax paid on gift to daughter 1,200

State sales taxes 1,750

State occupational license fee 300

Property tax on value of his automobile (used 100% for business) 475

What is the maximum amount Hugh can claim as taxes in itemizing deductions from AGI?

a. $7,650

b. $8,850

c. $9,625

d. $10,000

e. None of the above

business accounting

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Answer 1

Answer #1

Maximum amount Hugh can claim as taxes in itemizing deductions from AGI:-

a. $7,650

Computation:-

Real estate tax on Iowa residence $3,800

Real estate taxes on a vacation home 2,100

State sales taxes 1,750

itemized deductions $7,650

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Answer 2

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