During the current year, Seth, a self-employed individual, paid the following taxes: Federal income tax $15,000...
During the current year, Seth, a self-employed individual, paid
the following taxes:
| Federal income tax | $15,000 |
| State income tax | $8,500 |
| Real estate taxes on land in South America (held as an investment) | $1,000 |
| State sales taxes | 300 |
| Personal property taxes based upon value | $1,600 |
| Federal self-employment tax | $ 800 |
What amount can Seth claim as an itemized deduction for taxes paid
during the current year?
a.$11,400
b.$10,000
c.$10,100
d.$9,500
e.None of these choices are correct.
Homework Answers
ANSWER
ITEMIZD DEDUCTIONS ALLOWED
STATE INCOME TAXES $8,500
REAL ESTATE TAX ON LAND $1,000
STATE SALES TAX $300
PERSONAL PROPERTY TAX $1,600
TOTAL DEDUCTIONS $11,400
FEDERAL INCOME TAXES AND FEDERAL SELF MPLOYMENT TAXES ARE NOT ALLOWED AS ITEMIZED DEDUCTIONS BY IRS.
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