Bart and Elizabeth Forrest, both age 47, are married and have no dependents. They have asked you to advise them whether they should file jointly or separately in 2016. They present you with the following information:

If they file separately, Bart and Elizabeth will split the real estate tax and mortgage interest deductions equally. Write Bart and Elizabeth a letter in which you make and explain a recommendation on filing status for 2016. Bart and Elizabeth reside at 2003 Highland Drive, Durham, NC 27707.

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Bart Elizabeth Joint Salary Business net income Interest income Deductions for AG Medical expenses State income tax Real estate tax Mortgage interest $38,000 $110,000 1,200 14,000 3,358 $2,200 400 2400 10427 800 3,800 4,200 1200