In year 1, Peter and Shaline Johnsen moved into a home in a new subdivision. The
ID: 2533215 • Letter: I
Question
In year 1, Peter and Shaline Johnsen moved into a home in a new subdivision. Theirs was one of the first homes in the subdivision. In year 1, they paid $1,700 in real property taxes on the home to the state government, $500 to the developer of the subdivision for an assessment to pay for the sidewalks, and $1,000 for real property taxes on land they hold as an investment. What amount of property taxes are the Johnsens allowed to deduct assuming their itemized deductions exceed the standard deduction amount before considering any property tax deductions?
Explanation / Answer
Solution:
The Real Property taxes on home to State Government of $1,700 and $1,000 Real Property taxes of on land can be claimed as itemized deductions. So, $2,700 can be Clamied as itemized deductions.