11. The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1–4.

Ivan and Irene paid the following in 2010 (all by check or can otherwise be substantiated):

Contributions to Perpetual Perpetuity Catholic Church $ 400 Tuition to Perpetual Perpetuity Catholic School for Ira 6,000 Clothes to Salvation Army (10 bags in good condition) 350 Contributions to George Kerry’s Congressional campaign 250 Psychotherapy for Irene 2,000 Eyeglasses for Ira 375 Prescription medication and drugs 1,800 Credit card interest 1,345 Interest on Ivan’s dental school loans 3,000 Investment interest on stock margin account 325 Auto loan interest (auto was paid for by a home equity loan on residence)

900 Auto insurance 1,600 Dave Deduction, CPA, for preparation of last year’s tax return 700 Safe-deposit box for storage of stocks and tax data 100 Contribution to an educational savings account for Ira 1,000 Home mortgage interest 10,875 Home property taxes 3,100 State sales taxes 5,000 Unreimbursed business expense (seminar on tooth polishing) 700 In June, Ivan purchased a new Professional HDV Camcorder for $7,000. While the Incisors were on vacation in August, someone broke into their residence and stole the plasma TV. Ivan’s homeowners’ insurance did not reimburse him for any part of the loss since he declined the special premium add-on for high value items required by his policy. If the casualty or theft loss floor is changed from $100 to $500 by 2010 year-end legislation, please use a basis of $7,400 to retain the integrity of the problem.
Required: Combine this new information about the Incisor family with the information from Chapters 1–4 and complete a revised 2010 tax return for Ivan and Irene. Be sure to save your data input files since this case will be expanded with more tax information in later chapters.