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    Itemized Deductions Limitations

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    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.

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    https://brainmass.com/business/accounting/itemized-deductions-limitations-108564

    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

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