Interest income from CDs $1,800 Interest Income from Series EE $4,000 Government Bonds Mortgage Interest on Principal Residence $15,000 Property taxes on Residence $8,000 PM! Insurance Payments $3,000 Cash Charitable Contributions $2,500 NonCash Contributions (Used Clothing to Salvation Army) $350 The Smiths itemized deductions in 2017. The federal tax refund was $3,500 and the IL state tax refund was $600. In addition, the Smiths own rental property (a "two flat" in Chicago) which they have rented out for the entire year. Total rental income was $30,000. Rental property related expenses were as follows: Item Amount Mortgage Interest on Rental Property $13,000 Property Tax $9,000 Repairs on Rental Units $2,6000 Depreciation on Rental Units (using SL Depreciation) $3,500 Utilities $3,000 Landscaping $500