LO.3, 8, 11 Bonnie and Jake are married with no dependents and live in Montana

(not a community property state). Because Jake has large medical expenses, they seek your advice about filing separately to save taxes. Their income and expenses for 2012 are as follows:

Bonnie’s salary $ 42,500 Jake’s salary 26,000 Interest income (joint) 1,500 Rental loss from actively managed rental property (23,000)

Jake’s unreimbursed medical expenses 8,500 All other itemized deductions:*

Bonnie 9,000 Jake 3,400

*None subject to limitations Determine whether Bonnie and Jake should file jointly or separately for 2012.