Question
Charles has AGI of $45,500 and has made the following payments related to (1) land he inherited from his deceased aunt and (2) a personal
Charles has AGI of $45,500 and has made the following payments related to (1) land he inherited from his deceased aunt and (2) a personal vacation taken last year.
State inheritance tax on the land | $ | 1,430 |
County real estate tax on the land | 1,970 | |
School district tax on the land | 873 | |
City special assessment on the land (replacing curbs and gutters) | 813 | |
State tax on airline tickets (paid on vacation) | 303 | |
Local hotel tax (paid during vacation) | 292 | |
|
Calculate the amount of taxes Charles may include in his itemized deductions for the year under the following circumstances: (Leave no answer blank. Enter zero if applicable.)
a. Suppose that Charles holds the land for appreciation.
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Charles has AGI of $45,500 and has made the following payments related to (1) land he inherited from his deceased aunt and (2) a personal vacation taken last year.
State inheritance tax on the land | $ | 1,430 |
County real estate tax on the land | 1,970 | |
School district tax on the land | 873 | |
City special assessment on the land (replacing curbs and gutters) | 813 | |
State tax on airline tickets (paid on vacation) | 303 | |
Local hotel tax (paid during vacation) | 292 | |
|
Calculate the amount of taxes Charles may include in his itemized deductions for the year under the following circumstances: (Leave no answer blank. Enter zero if applicable.)
b. Suppose that Charles holds the land for rent.
c. Suppose that Charles holds the land for appreciation and that the vacation was actually a business trip. (Apply limits if applicable)
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