Krupetskiy5AC450A - Tanya Krupetskiy Professor Weber AC450A...

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Tanya Krupetskiy Professor Weber AC450A Week 5 Ch.10 Ex. 45 AGI $277,300 Medical expenses before 7.5%-of-AGI limitation $28,000 Interest on home mortgage $8,700 State inome taxes $9,500 Real estate taxes $3,600 Charitable contributions $2,500 Evan's itemized deductions before the overall limitatin are computed as follows: Medical expenses $7,203 Interest on home mortgage $8,700 State inome taxes $9,500 Real estate taxes $3,600 Charitable contributions $2,500 Total itenized deduction before overall limitation $31,503 Evan's itemized deductions subject to the overal limitation are as follows: Interest on home mortgage $8,700 State inome taxes $9,500 Real estate taxes $3,600 Charitable contributions $2,500 Total $24,300 Step 1 Calculate the lesser of: 3%($277,300 AGI - $166,800) $3,315 80% of itemized deductions subject to limitation $19,440 Step 2 Multiply the Step 1 amount by one-third $1,105 Therefore, the amount of the reduction is $1,105, and Evan has $30,398 of deductible iemized deductions, computed as follows: Deductible itemized deductions subject to overall limitation ($24,300 - $1,105) $23,195
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