Cory incurred and paid the following expenses: Calculate the amount that Cory can deduct (before any percentage limitations).

Question

Cory incurred and paid the following expenses:  Calculate the amount that Cory can deduct (before any percentage limitations).

Quizplus · Accepted Answer

Based on the information given, Cory can deduct the sum of the following expenses:
- Mortgage interest: $2,000
- Property taxes: $1,600
- Charitable contributions: $300
- State income taxes: $700
- Medical expenses (over 7.5% of AGI): $1,000 - (7.5% x $30,000) = $1,000 - $2,250 = $0 (because the expenses do not exceed the 7.5% limit)
Therefore, the total deductible amount is $2,000 + $1,600 + $300 + $700 + $0 = $4,600. Option B is the best choice.

Cory Incurred and Paid the Following Expenses: Calculate the Amount