The Problem and required calculation is in the paper.

BUS 123 C - Section 2Quiz # 4Spring 2019Passive LossesTaxpayerDiego SantosFiling StatusSingleDependentsJulie ( daughter )OccupationFinancial AdvisorModified Adjusted Gross Income : $125 , 000 ( before any Passive Losses)Diego Santos has investments in three passive activities . The activities are allrental real estate and Diego actively participated in each activityThe activities had the following suspended losses carried over from 2017 :Activity A130 , 000 )Activity B20 , 000 )Activity C25, 000 )Total suspended losses( 75 , 000 )The activities had the following income and losses for 2018Activity A5Activity B17, 00 0Activity C12, 00045 , 000 )Net ActivityS( 6 , 000 )Required :"Total Passive Losses for 2018SDeductible Passive LossesSCarryover Passive Losses :"Activity AActivity BActivity CS Bus]23C - Section 2Quiz #$ 4Spring 2019Itemized Deduction . CalculationTaxpayerPaul & Karen SmithFiling StatusMarried Filing JointlyDependentsJames ( Karen's father )OccupationPaul : General Contractor ( employee )Karen : Mortgage Broker ( employee )Adjusted Gross Income : $145 , 000The taxpayers had the following transactions for 2018 :Medical ExpensesMedical Insurance Premiums8, 000Prescription medication2, 750Eyeglasses400Doctor and dentist bills for James ( paid by Karen )3, 000Dancing lessons ( recommended by doctor )1. 500Physical therapy ( following knee surgery )800dental bills paid for Julie ( Paul's cousin )3, 000Miles driven ( mileage rate for medical is 19 cents / mile )total miles to doctor100 milestotal miles to take James to doctor50 milestotal miles to health club for yoga classes175 milestotal miles to plastic surgeon ( for face lift )40 milesOver- the-counter items :"vitamins650insulin ( for diabetes)len en er1 , 30 0bandages100TaxesState income taxes withheld from wages7, 500Balance of 2017 state taxes due , paid April 15 , 20181 , 2002018 estimated tax payments made as follows :`paid April 15 , 2018paid June 15 , 2018500paid January 15 , 2019500Sales tax paid\Real estate taxes paid on the following properties$5003 , 750Primary residence ( 15% of the home was used as home office )Secondary residence ( 150 days used , home never rented )\8, 000Rental property ( rented 80% of the year , vacant 20% of the year but available for rentS6, 200Personal property taxes paid ( for car registration - based on value of car )7, 800300InterestInterest paid on acquisition debt ( 15% of the home was used as home office )Total Debt :5Debt started25, 000950, 000Interest paid on secondary residence - acquisition debt ( 150 days used , home never rented ) $Total Debt :`January 15 , 2018Debt started4 , 500Interest paid on rental property - acquisition debt$ 200 , 000Note : ( rented 80% of the year , vacant 20% of the year but available for rent )April 15 , 2010Total Debt :`S17 , 000Debt startedInterest on home equity debt ( used to purchase new car )$600 , 000Interest paid on credit card debtJuly 1 , 2017Investment interest paid ( Total interest income received $6 , 500 )3, 50 01 , 2008, 000 ContributionsCash donations to City Team Ministries ( a qualified charity !\$5 , 000Check mailed to American Red Cross on December 31 , 2018 and received by thecharity January 4 , 20195500Purchase of ticket for a performance of a local symphony ( a qualified charity )405Volunteer of services to a qualified charity to read to children _ _^Food purchased and provided to homeless individuals on the street\} noibubad basimo's600 value of time donated5Used clothing and household items donated to Salvation200Purchase of items June 1 , 2010lation Army June 30 , 2018Value of items donated70055Donation of stock to White Corporation to San Jose State University :275Purchase of stock on March 3 , 2018\Donation of stock on May 1 , 2018$2, 500Miles driven to perform charitable services for qualified charity ( 14 cents per mile )$3, 600500 total milesOther ExpensesGambling Losses ( Gambling winnings were $1 , 500 )Safe deposit box ( used to store stock certificates and tax records )2 , 750Union dues for Jame's construction job225Tax preparation fees ( allocated 40% to rental property and 15% to business )$S8001 , 500 Total paidRequieCalculate the following amounts :"Total allowed medical expenses ( before limitation )Deductible medical expenses ( after limitation )Total allowed taxes ( before limitation )Deductible taxes ( after limitation )Deductible Mortgage InterestDeductible Investment InterestDeductible Cash ContributionsDeductible non-cash ContributionsDeductible other itemized deductionsTotal Itemized Deductions