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Simpson, age 45, is a single individual who is employed full time by Duff Corporation. This year Simpson reports AGI of $46,000 and has
Simpson, age 45, is a single individual who is employed full time by Duff Corporation. This year Simpson reports AGI of $46,000 and has incurred the following medical expenses: Dentist charges $1,185 Physician's charges Optical charges Cost of eyeglasses Hospital charges Prescription drugs Over-the-counter drugs Medical insurance premiums (not through an exchange) 1,950 760 490 2,560 365 940 965 a. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations. Medical expenses b. Suppose that Simpson was reimbursed for $540 of the physician's charges and $1,480 for the hospital costs. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations. Medical expenses Charles has AGI of $50,000 and has made the following payments related to (1) land he inherited from his deceased aunt and (2) a personal vacation taken last year. State inheritance tax on the land $1,250 1,810 County real estate tax on the land School district tax on the land 927 City special assessment on the land (new curbs and gutters) State tax on airline tickets (paid on vacation) Local hotel tax (paid during vacation) 888 249 245 Calculate the amount of taxes Charles may include in his itemized deductions for the year under the following circumstances: (Leave no answer blank. Enter zero if applicable.) a. Suppose that Charles holds the land for appreciation. Includible in itemized deductions b. Suppose that Charles holds the land for rent. Includible in itemized deductions c. Suppose that Charles holds the land for appreciation and that the vacation was actually a business trip. Includible in itemized deductions
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