Shane and Alyssa (a married couple)have AGI of $345,050 in 2014. They bought a house this year and paid $16,000 of interest expense on the mortgage and paid $6,500 of property taxes. They will be allowed a deduction from AGI of
A)$12,200.
B)$22,500.
C)$19,900.
D)$21,300.

Question

Quizplus · Accepted Answer

Shane and Alyssa can itemize their deductions instead of taking the standard deduction. The itemized deductions would include $16,000 in mortgage interest and $6,500 in property taxes paid. The total itemized deduction would be $22,500, which is greater than the standard deduction of $12,200. Therefore, Shane and Alyssa can deduct $22,500 from their AGI.

Shane and Alyssa (A Married Couple)have AGI of $345,050 in 2014