Justina purchased a vacation home on March 1st of the current year. In conjunction with the purchase she paid $3,000 in points to obtain a lower interest rate on her 15-year mortgage. How much of the $3,000 can Justina deduct in the current year?

a. $3,000

b. $200

c. $0

d. $167

e. none of the above

Kate itemizes in 2017. Included in her itemized deductions is $2,900 for state income taxes. Her other itemized deductions total $3,750. Kate's standard deduction amount in 2017 would have been $6,300. In 2018, Kate receives a refund from the state for $500. Which of the following best describes how Kate should handle the refund on her tax return?

a. Kate amends her 2017 tax return and deducts only $2,400 for state income taxes.

b. Kate reduces her state income tax deduction in 2018 by $500.

c. Kate includes $500 in gross income in 2018.

d. Kate includes $350 in gross income in 2018.

e. None of the above.

The Martins file a joint return. Their AGI is $375,800. The Martins report the following amounts on Schedule A: home mortgage interest, $12,920; real estate taxes, $5,100; and $7,000 of cash gifts to qualified charities. The amount the Martins will deduct from AGI for their itemized deductions is:

a. $23,160.

b. $13.746.

c. $18,584.

d. $25,020.

e. $21,491.