Charles, who is single and age 61, had AGI of $400,000 during 2015. He incurred
ID: 2493671 • Letter: C
Question
Charles, who is single and age 61, had AGI of $400,000 during 2015. He incurred the following expenses and losses during the year.
Medical expenses before 10%-of-AGI limitation
$39,500
State and local income taxes
5,200
Real estate taxes
4,400
Home mortgage interest
5,400
Charitable contributions
4,800
Casualty loss before 10% limitation (after $100 floor)
47,000
Unreimbursed employee expenses subject to 2%-of-AGI limitation
8,900
Gambling losses (Charles had $7,400 of gambling income)
9,800
Compute Charles’s total itemized deductions for the year.
Medical expenses before 10%-of-AGI limitation
$39,500
State and local income taxes
5,200
Real estate taxes
4,400
Home mortgage interest
5,400
Charitable contributions
4,800
Casualty loss before 10% limitation (after $100 floor)
47,000
Unreimbursed employee expenses subject to 2%-of-AGI limitation
8,900
Gambling losses (Charles had $7,400 of gambling income)
9,800
Compute Charles’s total itemized deductions for the year.
Explanation / Answer
35,100
Schedule of Itemized deduction of Charle's Amount in $ Medical Expense-Not in excess of 10% of AGI NIL State and local Income taxes 5,200 Real Estate Taxes 4,400 Home mortgage Interest 5,400 Charitable contribution 4,800 Casualty Loss (47000-(400000*10%)) 7,000 Unreimbursed Employee Expense (8900-(400000*2%)) 900 Gambling Losses (subject to maximum to the extent of gambling income) 7,400 Total Itemized Deductions for the year35,100