Question

Answer the following questions: (show details)

Meg pays $1,900 in student loan interest. Her AGI is $72,000. What is her For AGI student loan deduction?

1,900

1,013

887

0

What is the maximum amount of debt related to home acquisition you can take interest deductions for in 2018?

0, interest on acquisition is undeductible

1,000,000

Unlimited, there is no ceiling

750,000

100,000

In 2018, you had the following tax items: $5,000 state income taxes paid, $4,500 state sales taxes paid, $4,700 in property taxes, $500 in ad valorem taxes on your car. How much should you claim on your- itemized deductions for state and local taxes?

$10,200

$10,000

$14,700

$9,200

$9,700

I donate my old furniture t a Goodwill, a public charity. I paid around $25,000 for my furniture in 2006. I feel its worth around $16,000 today as it’s not too badly scuffed up. How much of a charitable deduction can I take if I remember to get a receipt form the charity? Assume my AGI is $30,000.

$1,000

$15,000

$16,000

$0

$9,000

$25,000

Answer 1

Student loan interest deduction is 1,013

33	Student loan	Amount	Amount
	Actual interest		1,900
1	Min actual or 2,500		1,900
2	Total income	72,000
3	Deductions to AGI	-
4	Modified AGI	72,000
5	Phase out limit starts at	65,000
6	AGI over 5	7,000
7	divide with 15k	0.467
8	Amount of phase out (1 * 7)		887
	Deduction		1,013

Second question

The limit is $750,000 for 2018

Third question

Total deduction is 10,200 = $5,000 state income tax + 4,700 property tax + 500 ad valorem tax

Fourth question
Deduction is limited to $9,000 ( lesser of fair market value of property ($16,000) or 30% of AGI ($9,000))