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    Taxation: Amount of Their Itemized Deductions

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    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?

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    Solution Preview

    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)
    Total ...

    Solution Summary

    The solution determines what is the amount of their itemized deductions.

    $2.19

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