M, age 65 and single, has no dependents and an A.G.I, of $50,000 and these expenses: medical expenses of $2,200, personal casualty losses of $5,000, real estate taxes of $2,000, and residence mortgage interest of $1,000.In 2012 the taxpayer should deduct which of the following total amounts from A.G.I.?
A)$10,200
B)$14,000
C)$11,200
D)Some other amount

Question

Quizplus · Accepted Answer

For the tax year 2012, the taxpayer can deduct medical expenses to the extent that they exceed 7.5% of the adjusted gross income (AGI), casualty losses (subject to certain restrictions), real estate taxes, and mortgage interest. However, the medical expenses of $2,200 do not exceed 7.5% of the AGI ($50,000 * 7.5% = $3,750), so they are not deductible. The personal casualty losses might be deductible subject to certain conditions and thresholds, but without more information about whether these losses meet the criteria (e.g., if they are attributable to a federally declared disaster), it's difficult to determine their deductibility. The real estate taxes of $2,000 and the residence mortgage interest of $1,000 are deductible. Therefore, without considering the casualty losses, the deductible amount is at least $3,000. Since none of the provided options accurately reflect this calculation and the specific deductibility of casualty losses without further information, the correct answer is some other amount.

M, Age 65 and Single, Has No Dependents and an A.G.I