Karen Baker, a cash basis calendar year taxpayer, paid the following during the year: What itemized deduction may Karen claim for taxes on her return?

Question

Karen Baker, a cash basis calendar year taxpayer, paid the following during the year:  What itemized deduction may Karen claim for taxes on her return?

Quizplus · Accepted Answer

Karen is eligible to deduct the personal property taxes paid ($520) and the state income taxes paid ($5,000). She is not eligible to deduct the state sales tax paid ($3,800 - as of this writing not deductible in 2012) or the other taxes and the ﬁne

Karen Baker, a Cash Basis Calendar Year Taxpayer, Paid the Following