Question

Nasim paid the following taxes this year: Real estate taxes on rental property he owns: $5,000...

Nasim paid the following taxes this year:

Real estate taxes on rental property he owns: $5,000
Real estate taxes on her own residence: $4,400
Federal Income Taxes: $10,000
State Income Taxes: $3,750

for 2018, what amount can Nasim deduct as an itemized deduction on his tax return?

A) $8,150
B) $10,000
C) $18,150
D) $23,150

Business   Accounting   
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Homework Answers

Answer #1

Correct Answer (A) $8150

Explanation and calculations

Deductions

Allowed /Not Allowed

Real estate taxes on rental property he owns

Not Allowed

Real estate taxes on her own residence

Allowed

Federal Income Taxes

Not Allowed

State Income Taxes

Allowed

Itemized Deductions Calculation

Real Estate tax on Own Residence

$ 4,400.00

State Income taxes

$ 3,750.00

Total Itemized Deductions

$ 8,150.00

Local taxes are allowed for deduction.

A person can deduct taxes paid on residential property but not on business property or any property owned otherwise.

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