Duke and Pat Colins have adjusted gross income of $500,000. They have itemized deductions of $20,000 consisting of $8,000 in medical expenses that exceed 7 1/2% of adjusted gross income, $3,000 in property taxes, $4,000 in housing interest, and $5,000 in miscellaneous itemized deductions that exceed 2% of adjusted gross income. What is the amount of their itemized deductions?© BrainMass Inc. brainmass.com June 3, 2020, 11:40 pm ad1c9bdddf
Itemized deductions allowed for Duke and Pat Collins are:
1. 3,000 property taxes
2. 4,000 housing interest (assumed to be interest on the house's mortgage)
The solution determines what is the amount of their itemized deductions.