Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need help with Part B and C Geoffrey, age 45, is recently divorced and maintains a household in which his dependent aunt lives. He has

Need help with Part B and C

Geoffrey, age 45, is recently divorced and maintains a household in which his dependent aunt lives. He has the following income and expenses in 2017:

Salary income $74,000
Interest income 1,200
Dividend income 1,800
Child support paid 12,000
Mortgage interest on residence 2,500
Property tax on residence 900
Medical expenses for Geoffrey 1,600
Medical expenses for aunt 5,950
Penalty imposed on premature withdrawal of funds from a certificate of deposit 675
State income tax 2,440
Federal income tax 12,300

a. Classify the following expenses as either "Deductible for AGI", "Deductible from AGI", or "Not deductible".

Child support paid Not deductible
Mortgage interest on residence Deductible from AGI
Property tax on residence Deductible from AGI
Medical expenses for Geoffrey Deductible from AGI
Medical expenses for aunt Deductible from AGI
Penalty imposed on premature withdrawal of funds from a certificate of deposit Deductible for AGI
State income tax Deductible from AGI
Federal income tax Not deductible

The personal exemption is $4,050 for 2017.

b. Geoffrey's gross income is $, and his AGI is $.

c. Compute the amount of his total itemized deductions (after any limitations). $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Cost Accounting

Authors: Edward J. Vanderbeck

12th Edition

0324100949, 978-0324100945

More Books

Students also viewed these Accounting questions

Question

14.5 Describe how accidents at work can be prevented.

Answered: 1 week ago