Question
John, who files as a single taxpayer, had AGI of $90,000 for 2021. He incurred to following expenses and losses during the year: Automobile Loan
John, who files as a single taxpayer, had AGI of $90,000 for 2021. He incurred to following expenses and losses during the year:
Automobile Loan Interest$ 3,000
Casualty Loss (before 10% Limitationbut after $100 floor
- not in a Federally Declared Disaster Area) 15,000
Charitable Contributions -
Church 5,000
Goodwill - clothing costing $1,000 with $500 FMV
Home Mortgage Interest15,000
Medical Expenses - Doctors, etc. 6,000
Medical Insurance Premiums 2,000
Medical Insurance Reimbursements 1,000
Real Estate Taxes 5,000
State Sales Tax 1,500
State & local Income Taxes 6,000
Tax Preparation Fees 500
Unreimbursed Employee Business Expenses 4,000
Part 1 - Compute John's Medical Expense deduction for 2021. Show your calculations for full credit.
Part 2 - Compute John's Itemized Deductions for 2021 starting with the Medical Expense deduction that you calculated in Part 1 above. Show your calculations for full credit.
Part 3 - What is John's potential Standard Deduction for 2021? Should John itemize his deductions or take the standard deduction?
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