Federal Tax Research 10th Edition by Steven Gill, Gerald Whittenburg, Roby Sawyers, Debra Sanders, William Raabe

Exercise 44

LaFollette lives in a condominium with Tourneau. The two are not married, but they each hold a one-half interest in the deed for their unit. In the current year, the condominium association installed a solar water heater. The association paid for the water heating system, but it assessed LaFollette and Tourneau $7,500 for this expenditure, as it did for other unit owners. Tourneau was short of funds, so LaFollette paid the entire assessment before the end of the year. Compute LaFollette's I.R.C. § 25D credit against her Form 1040 liability for the year.