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# Itemized Deductions Limitations

Bob, who is single had AGI of \$400,000 in 2006. He incurred the following expenses & losses during the year.

Medical expenses before 7.5% of AGI limitation \$39,500
State & local income taxes \$5,200
Real Estate taxes \$4,400
Home mortgage interest \$5,400
Charitable contributions \$4,800
Casualty loss before 10% limitation (after \$100 floor) \$47,000
Unreimbursed employee expense subject to 2%-of-AGI limit \$8,900
Gambling losses (Charles had \$7,400 of gambling income) \$9800

Compute Bob's itemized deductions before & after the overall limitation.

#### Solution Preview

Single Bob has an AGI of \$400,000

Itemized deductions are limited as follows:

Medical total of \$39,500 - 30,000 (7.5% of AGI) = 9,500

No limitations on
State & local income taxes \$5,200
Real Estate taxes \$4,400
Home mortgage interest ...

#### Solution Summary

The solution discusses each type of itemized deduction and what limits might apply.

\$2.19