Melba incurred the following expenses for her dependent daughter during the current year:
$\begin{array}{lr}
\text { Payment of principal on daughter's automobile loan} &\$ 3,600 \
\text {Payment of interest on above loan } &2,900 \
\text { Payment of daughter's property taxes } &1,800 \
\text {Payment of principal on daughter's personal residence loan } &2,800 \
\text { Payment of interest on daughter's personal residence loan } &7,000
\end{array}$
How much may Melba deduct in computing her itemized deductions?
A) $ \$ 0 $.
B) $ \$ 8,800 $
C) $ \$ 11,700 $.
D) $ \$ 18,100 $
E) None of the above.

Question

Melba incurred the following expenses for her dependent daughter during the current year: 
$\begin{array}{lr}
 \text {  Payment of principal on daughter's automobile loan} &\$ 3,600 \
 \text {Payment of interest on above loan  } &2,900 \
 \text { Payment of daughter's property taxes } &1,800 \
 \text {Payment of principal on daughter's personal residence loan  } &2,800 \
 \text { Payment of interest on daughter's personal residence loan } &7,000
\end{array}$
How much may Melba deduct in computing her itemized deductions?
A) $ \$ 0 $.
B) $ \$ 8,800 $
C) $ \$ 11,700 $.
D) $ \$ 18,100 $
E) None of the above.

Quizplus · Accepted Answer

Melba cannot deduct expenses paid on behalf of her dependent daughter, except for the interest on the daughter's personal residence loan, which is deductible as mortgage interest. However, since the daughter is not the taxpayer, Melba cannot claim this deduction. Therefore, the total deductible amount is $0.

Melba Incurred the Following Expenses for Her Dependent Daughter During