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____ 29. Al single, age 70, and has gross income of $100,000. His deductible exp

ID: 376797 • Letter: #

Question

____   29.   Al single, age 70, and has gross income of $100,000. His deductible expenses are as follows:

Alimony

$9,000

Charitable contributions

5,000

Contribution to a traditional IRA

4,000

Medical expenses

11,850

State income taxes

4,000

Expenses paid on rental property

8,000

Unreimbursed moving expenses to a new job in a new city (400 miles away)

1,000

Interest on home mortgage and property taxes on personal residence

8,000

State income tax

9,000

What is Al’s medical deduction ? Please select the correct answer and why (include a brief description).

a.

$2,300.

b.

$7,700.

c.

$6,000.

d.

$7,700.

e.

None of the above.

Alimony

$9,000

Charitable contributions

5,000

Contribution to a traditional IRA

4,000

Medical expenses

11,850

State income taxes

4,000

Expenses paid on rental property

8,000

Unreimbursed moving expenses to a new job in a new city (400 miles away)

1,000

Interest on home mortgage and property taxes on personal residence

8,000

State income tax

9,000

Explanation / Answer

The Al’s medical deductions are $ 11,850. The correct answer is None of these i.e. (e). The Al single is about 70 years old. He has the gross income of $ 100,000 but he have the certain expenses to pay from the gross income so the medical expenses he have to pay is $ 11,850 given in the deductible expenses list.