Question

Problem 10-28 (LO. 2)

Linda, who files as a single taxpayer, had AGI of $280,000 for 2019. She incurred the following expenses and losses during the year:

Medical expenses (before the 10%-of-AGI limitation)	$33,000
State and local income taxes	4,800
State sales tax	1,300
Real estate taxes	6,000
Home mortgage interest	5,000
Automobile loan interest	750
Credit card interest	1,000
Charitable contributions	7,000
Casualty loss (before 10% limitation but after $100 floor; not in a Federally declared disaster area)	34,000
Unreimbursed employee business expenses	7,600

Calculate Linda's allowable itemized deductions for the year.
$.

Answer 1

ANSWER

Calculation of Linda's Allowable itemized deduction for the year:

Particulars	Amount
Itemized deduction subject to overall limit:
Local and state taxes (capped upto $10,000)	$10,000
Home mortgage interest	$5,000
Charitable contributions	$7,000
Unreimbursed employee expenses Eliminated from 2019
Medical Expense - 33,000-(280,000*10%)	$5,000
Casualty Loss Eliminated from 2019
Linda;s Allowable itemized deduction for the year	$27,000

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