Krupetskiy5AC450A

# 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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