Question
Problem 2: Deductions for Personal Activities Robert and Chris Jones are married and report AGI of $200,000 in 2022. They also provided the following information
Problem 2: Deductions for Personal Activities
Robert and Chris Jones are married and report AGI of $200,000 in 2022. They also provided the following information about their expenditures throughout the year:
| Expenditures | |
| Surgical Procedure to repair leg injury | 15,000 |
| Doctor Visits | 5,000 |
| Elective cosmetic surgery | 3,000 |
| State Income Taxes | 5,000 |
| Property Taxes on Principal residence | 1,000 |
| Property Taxes on Vacation Home | 2,000 |
| Utilities for vacation home | 20,000 |
| Local Sales tax per IRS table | 500 |
| Mortgage Interest | 30,000 |
| Investment Interest | 500 |
| Cash Contributions to qualified charitable organizations | 130,000 |
OTHER INFORMATION
The total Mortgage interest paid can be allocated as follows: i) $20,000 from the mortgage used to purchase their principal residence in 2015. The average mortgage balance for 2022 was $900,000, ii) $10,000 for a mortgage to purchase their vacation home in 2017. The average mortgage balance for 2022 was $100,000.
The vacation home was rented for 30 days during the year and generated total income of $10,000. It was used personally for 120 days. The taxpayer uses the IRS method for any allocations.
They had total investment income during the year of $2,000. All of it represented ordinary dividends from Alphabet, Inc.
Required: What are the total allowable itemized deductions for 2022?
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Accounting Cases In Hong Kong The First Hksa Case Competition
Authors: HKSA Case, Monograph Work GP
1st Edition
9629370883, 978-9629370886
