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Hugh, a self-employed individual, paid the following amounts during the year: Real estate tax on Iowa residence $3,800 State income tax 1,700 Real estate taxes on a vacation home 2,100 Gift tax paid on gift to daughter 1,200 State sales taxes 1,750 State occupational license fee 300 Property tax on value of his automobile (used 100% for business) 475 What is the maximum amount Hugh can claim as taxes in itemizing deductions from AGI

Respuesta :

abiolataiwo2015

Answer:

$7,650

Explanation:

Calculation to determine the maximum amount Hugh can claim as taxes in itemizing deductions from AGI

Real estate tax on lowa residence $ 3,800

Add Greater of sale tax or state income tax $ 1,750

Add Real estate tax on a vacation home $ 2,100

Itemized deduction allowable $ 7,650

($3,800+$1,750+$2,100)

Therefore the maximum amount Hugh can claim as taxes in itemizing deductions from AGI is $7,650