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limitations within itemized deductions

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For 2006, Jon & Betty Smith file a joint return with AGI of $240,000. Their itemized deductions are the following:

Medical expenses before AGI floor $23000
Casualty loss (not covered by insurance) before statutory floors $26,000
Interest on home mortgage $10,000
Interest on credit cards $800
Property taxes on home $13,000
Charitable contributions $17,000
State income tax $15,000
Tax return filing fees $1200

After all necessary adjustments are made, what is the amount of itemized deductions the Hansens may claim?

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Solution Summary

The solution discusses each deduction and the limits which could apply to the amount.

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Itemized deductions

No limitation items:
Interest on home mortgage $10,000
Property taxes on home $13,000
Charitable contributions $17,000
State income tax $15,000

No deduction item:
Interest on credit cards $800

Limitations computed:
Medical total of ...

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