Question
Please calculate the amount of itemized deductions allowed for each category of the Schedule A Itemized Deductions as well as the total Itemized Deductions given
Please calculate the amount of itemized deductions allowed for each category of the Schedule A Itemized Deductions as well as the total Itemized Deductions given all of the information below:
a. Married Filing Joint
b. Wages - $125,000 Federal Withholding - $18,500; State Withholdings - $7,500
c. Taxable Interest - $4788
d. Potential Medical Expenses
ii. Physical Therapy for your back - $1,200
iv. Prescription Sunglasses - $1,800
vi. Surgery on your knee - $8107
e. You own a house with FMV $265,000; Mortgage $215,000 - 3% Interest on the Mortgage; Real Estate Taxes of 5%.
f. You have extensive savings and bought a car for $61,397. The sales tax rate in your state is 7%. You paid a licensing tax of $240 and an additional property tax of 2% of the cost of the car.
g. You gave considerable amounts of money and items during the year.
i. $6,000 to your church in cash
ii. Clothes and household goods to Goodwill (Basis $12,500; FMV $3,200)
iii. Land to Promises Never Broken (a 501c(3) charity that rescues horses). They will use the land to rehabilitate the horses. You owned the land for 8 years. Basis $74,500; FMV $165,000
iv. An antique car to be auctioned off by your church (Basis $12,500; FMV $36,000)
v. You performed 150 hours of work at VITA program to prepare tax returns for needy people, since you are licensed as a CPA your expertise is valued by the VITA program at $125 per hour. You also drove 118 miles to the charity.
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