Question
I dont understand what answer 1 , 2 and 3. this is federal income taxes 1. Frank donates two blocks of stock to charity. (1)
I dont understand what answer 1 , 2 and 3. this is federal income taxes
1. Frank donates two blocks of stock to charity. (1) 100 shares of ABC Corp: Cost $1,400; value $1,600; held 9 months. (2) 50 shares of MNO Corp: Cost $2,000; value $1,600; held 18 months. How much of a charitable deduction in total can Frank claim on these donations?
(a) $2,600
3. The property tax on Tim's home comes to $5,475 for the year 2021. He pays half on January 1 ($2,737.50). He would have paid the second half on July 1, but he sold the house to Betty on March 3rd, 2021. How much will Tim deduct in property taxes for the year from this home?
a. Zero.
b. $900
c. $915
d. $2,737.50
(b) $3,000
(c) $3,100
(d) $3,600
2. Elaine lives in a four-story house in Brooklyn but she is unable to climb stairs anymore due to a heart condition. So she spends $5,000 to have an elevator installed in her home on the advice of her doctors. Real estate experts tell her the elevator only adds $2,850 to the value of the home, but she needs it because of her condition. In determining her medical expense deduction, how much of her $4,000 cost can she count as a medical expense? (Ignore the 10% of AGI "floor" for the purpose of this question.)
a. Zero
b. $2,150
c. $2,850
d. $5,000
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