Exercise 10-22 (LO. 8) Pedro, who is a single taxpayer, had AGI of $328,000 for

Question

Exercise 10-22 (LO. 8) Pedro, who is a single taxpayer, had AGI of $328,000 for 2017. He incurred the following expenses during the year: Medical expenses before 10%-of-AGI limitation $12,000 State and local income taxes $8,900 Real estate taxes $1,600 · . Home mortgage interest $16,000 Charitable contributions $2,200 Deductible investment interest expense $1,700 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. Feachacl

Explanation / Answer

State and local income taxes $8900 Real estate taxes 1600 Home mortgage interest 16000 Charitable contributions 2200 Total $28700 Reduction equals the lesser of the following $1995 [3% × ($328,000 AGI $261500)] 80% of itemized deductions subject to limitation ($28,700 × 80%) $22960 Amount of reduction (1995) Deductible itemized deductions subject to overall limitation $26705 Itemized deductions not subject to overall limitation: Investment interest 1700 Total itemized deductions $28405

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.