Question
Read the information below and then complete the 2018 Schedule A. John and Julia are married and have two children. John works as a graphic
Read the information below and then complete the 2018 Schedule A.
John and Julia are married and have two children. John works as a graphic designer for a design firm and Julia is a massage therapist. They own a vacation home in Colorado that is used 30% for personal purposes (assume it is used 70% as a rental property and the income and expenses related to the rental have been accounted). During the year they receive $600 in reimbursements from their medical plan and report $5,500 of investment income (included in AGI). They contributed stock, with a fair market value of $3,000, which they acquired in 2005 at a cost of $1,700 to Ohlone College. Their gambling winnings for the year were $1,000 and are included in their adjusted gross income. Their adjusted gross income for the year is $98,000 and they provide you with the following data:
Automobile insurance$1,450
Homeowners insurance625
Life insurance1,000
Disability insurance375
Health insurance premiums (paid on an after tax basis)1,600
Country club dues1,800
Health club dues750
Hospital5,000
Doctor 1,275
Massage Therapists (they pay to receive messages, not related to Julia's job) 700
Dentists3,750
Prescription drugs275
Over-the-counter drugs460
State taxes withheld 8,475
Property taxes (ad valorem)400
Investment interest1,600
Mortgage interest (primary residence) 6,850
Real estate taxes (primary residence)2,240
Mortgage interest (vacation residence - unallocated)2,700
Real estate taxes (vacation residence - unallocated)1,350
Charitable contributions (cash; they have receipts) 7,750
Charitable contribution (clothes at FMV)100
Subscriptions to investment journals175
Dues to professional organizations375
Tax prep fees600
Investment advice525
Parking at work190
Safe-deposit box75
Gambling losses650
Unreimbursed employee business expenses (the full amounts paid and unreimbursed)
Airfare500
Lodging450
Meals290
Entertainment280
Incidentals250
Enter the following amounts from the 2017 Schedule A.
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