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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 insurance 625

Life insurance 1,000 / Disability insurance 375

Health insurance premiums (paid on an after tax basis) 1,600

Country club dues 1,800 / Health club dues 750

Hospital 5,000 / Doctor 1,275

Massage Therapists (they pay to receive messages, not related to Julias job) 700

Dentists 3,750 / Prescription drugs 275

Over-the-counter drugs 460 / State taxes withheld 8,475

Property taxes (ad valorem) 400 / Investment interest 1,600

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 journals 175

Dues to professional organizations 375

Tax prep fees 600 / Investment advice 525

Parking at work 190 / Safe-deposit box 75

Gambling losses 650

Unreimbursed employee business expenses (the full amounts paid and unreimbursed):

Airfare 500 / Lodging 450

Meals 290 / Entertainment 280

Incidentals 250

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