Jorge is a single individual aged 42 and had the following income and expenses during 2016:...
Jorge is a single individual aged 42 and had the following income and expenses during 2016:
Income:
Salary 43,000
Rental of a vacation home (rented
60 days, used 60 days and vacant 245 days) 4,000
Local municipal bond interest 2,000
Dividend from Apple, Inc. 400
Expenses:
Interest on home mortgage 8,400
Interest on vacation home mortgage 4,758
Interest on loan used to buy local municipal bonds 3,100
Property taxes on home 2,200
Property taxes on vacation home 1,098
State income taxes withheld from salary 3,300
State sales tax 900
Charitable contributions 1,100
Tax return preparation fees 300
Utilities and maintenance on vacation home 2,600
Depreciation on rental portion of vacation home 3,500
Calculate Jorge’s taxable income for the year. If Jorge has any options, choose the method that maximizes his deductions.
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