Bonnie and Jake (ages 35 and 36, respectively) 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 2014 are as follows:

Bonnies salary $ 42,500

Jakes salary 26,000

Interest income (joint) 1,500

Rental loss from actively managed rental property (23,000)

Jakes unreimbursed medical expenses 8,500

All other itemized deductions:

Bonnie 9,000

Jake 3,400