Exercise 10-22 (Algorithmic) (LO. 8) Pedro, who is a single taxpayer, had AGI of

Question

Exercise 10-22 (Algorithmic) (LO. 8) Pedro, who is a single taxpayer, had AGI of $355,600 for 2017. He incurred the following expenses during the year: Medical expenses before 10%-of-AGI limitation $15,260 State and local income taxes $10,668 Real estate taxes $2,134 Home mortgage interest $17,780 Charitable contributions $4,267 Deductible investment interest expense $1,600 Compute the amount of Pedro's itemized deductions after any applicable reductions and/or limitations. Round your computations to the nearest dollar and use rounded amounts in subsequent calculations

Explanation / Answer

AGI for 2017 $355600

Below are the itemised deductions:-

Medical expenses in excess of 10% of AGI is allwed

In this case 10% of AGI =355600*0.10

=$35560

Medical expenses are 15260,so they will not qualify for deductions

State and local tax $10668

Real estate tax $2134

Home mortgage interest $17780

Charitable contributiond $4267

Deductible investment interest expense $1600

So total itemised deductions would be:-$36449

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