Question

Please answer all 4 questions. thank you.

1.) In 2019, Jonathan pays real estate taxes of $18,000 and New York State income taxes of $17,000. Assuming he itemizes, what deduction for taxes can Jonathan claim in 2019?

	a.	$28,000
	b.	$10,000
	c.	$27,000
	d.	$35,000

2.) Interest paid or accrued during 2018 on aggregate acquisition indebtedness of $2 million or less ($1 million or less for married persons filing separate returns) is deductible as qualified residence interest.

a.)True

b.) False

3.) Mary pays $3,000 interest on a qualified student loan in 2020.  She is single and has a modified adjusted gross income of $65,000.  Which of the following statements is correct?

	a.	Mary is not entitled to any deduction for her student loan interest.
	b.	Mary is entitled to a for AGI deduction of $2,500.
	c.	Mary is entitled to a from AGI deduction of $2,500.
	d.	Mary is entitled to a for AGI deduction of $3,000.

4.) Charitable contributions that exceed the percentage limitations for the current year can be carried over for up to a maximum of three years.

a.) true

b.) false

Answer 1

1. Answer is (D) $35000

Explaination :

Generally, you can claim itemized deductions in the following categories:

• Medical and dental expenses.
• State and local income taxes.
• Real estate taxes.
• Home mortgage interest.
• Mortgage insurance premiums.
• Gifts to charity.
• Casualty or theft losses.

2. Answer is (B) False

Explaination:

For 2018 through 2025, interest is deductible on acquisition indebtedness up to $750,000 ($375,000 for married taxpayers filing separate returns). However, the lower limitation does not apply to acquisition indebtedness incurred on or before Dec.

3. Answer is (B) Mary is entitled to a for AGI deduction of $2,500.

Explaination:

A person is only eligible for AGI deduction of student loan interest. The upper cap of deduction of Student Loan Interest for AGI deduction is $2,500

Subject to the condition that If your MAGI is under $65,000, you are eligible for the full deduction of $2,500. If your MAGI falls between $65,000 and $80,000, you qualify for only a portion of the deduction.

Since, the MAGI (Modified Gross Annual Turnover) of Maryis $65,000. Therefore, she is eligible for full amount of for AGI Deduction of $2,500.

4. Answer is (B) False

Explaination:

Charitable contributions that exceed the percentage limitations for the current year can be carried over for up to a maximum of Five Years.