Melba incurred the following expenses for her dependent daughter during the current year:
Payment of principal on daughter's automobile loan
$3,600
Payment of interest on above loan
2,900
Payment of daughter's property taxes
1,800
Payment of principal on daughter's personal residence loan
2,800
Payment of interest on daughter's personal residence loan
7,000

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:
Payment of principal on daughter's automobile loan
$3,600
Payment of interest on above loan
2,900
Payment of daughter's property taxes
1,800
Payment of principal on daughter's personal residence loan
2,800
Payment of interest on daughter's personal residence loan
7,000
​
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 any of these expenses because they are not her own expenses. Deductions for interest and property taxes are only allowed for the taxpayer's own liabilities, not those of a dependent.

Melba Incurred the Following Expenses for Her Dependent Daughter During