Paul,a calendar year married taxpayer,files a joint return for 2016.Information for 2016 includes the following:
AGI
$175,000
State income taxes
13,500
State sales tax
3,000
Real estate taxes
18,900
Gambling losses (gambling gains were $12,000)
6,800
Paul's allowable itemized deductions for 2016 are:
A)$13,500.
B)$32,400.
C)$39,200.
D)$42,200.
E)None of the above.

Question

Quizplus · Accepted Answer

Paul's allowable itemized deductions include state income taxes ($13,500), real estate taxes ($18,900), and gambling losses up to the amount of gambling gains ($6,800). The total is $39,200. State sales tax is not deductible if state income tax is deducted.

Paul,a Calendar Year Married Taxpayer,files a Joint Return for 2016