Michael and Diana are married and have three children, Amara, Bryan, and Skyla. They live at 120 Main Street, Flushing NY 11425. Michael is a lawyer working for a Native American law firm, Native American Justice, Inc. Diana works part-time for Creation, a genetic research lab. The following is a list of information for Michael and Diana Lapin for the tax year 2019.

The Lapin’ W-2 information is as follows:

Michael	Diana
Gross wages	140,000	80,000
Federal Withholding Taxes	50,000	20,000
NYS Withholding Taxes	10,000	7,000
NYC Withholding Taxes	8,000	5,000

Expenses incurred during 2019 to be considered for Schedule A

Itemized Deductions - Medical

Long Term Care Insurance premiums – (for Michael) $10,000

Nike Exercise Rowing Machine (see Note 5) 5,000

Doctor visits to MD’s, & DDS, 20,000

Prescription Drugs 8,000

Travelling Expenses (see Note 6) 3,250

Vitamins & Herbs for Mr. & Mrs. Lapin 6,500

Visits to local Gypsies and

Fortune-tellers (Mrs. Lapin) 15,200

Medical Insurance reimbursements 12,500

Note 5 – Medical Expense: Michael has weak muscles in his back. His personal physician prescribed a Nike rowing machine to try to alleviate his lower back pain.

Note 6 – Mrs. Lapin took a trip to Miami after been diagnosed by her medical doctor with extreme stress and fatigue. She believes that the trip will elevate her condition, and that I did.

Taxes Paid

NYS & NYC Income Taxes See W-2 information

NYS Sales Taxes on purchase of Boat & living expenses $15,200

Real Estate Taxes 28,000

Personal Property Taxes 10,000

Interest Expense

Interest on Home Mortgage $20,000

Points on home mortgage 6,000

Mortgage Insurance Premiums 8,500

Charitable Contributions

Cash contributions to recognized public charities $25,000

Prior year carry forward charitable contributions 8,000

Donations of Property:

Paintings & Sculpture: (see Note 7)

• Cost $ 12,000
• FMV 22,000

Note 7 - Contribution of Property: The painting and sculpture were appraised by a reputable company. Michael believes that the estimated FMV should be $40,000 and not $22,000 as declared by the appraisal company.

Miscellaneous Deductions

Tax Return Preparation- Personal $2,500

Legal fees – Estate Planning 4,000

Safe Deposit Box at Chase used to safeguard stock certificates. 300

Other Expenses

Gambling losses (see Note 8) $24,000

Note 8 - Gambling Losses: Mrs. Lapin enjoys gambling in Las Vegas and she considers herself to be the “Black-Jack Doctor”. During 2019 she won 14,000 and incurred losses of 38,000. Her net gambling losses were 24,000. After her spring winnings, she has been on a consistent losing streak!

Instructions: Compute the Lapin’s Itemized Deduction for 2019.