Question

For calendar year 2020, Stuart and Pamela Gibson file a joint return reflecting AGI of $357,700. Their itemized deductions are as follows:
Note: All expenses are before any applicable limitations, unless otherwise noted.

Casualty loss in a Federally declared disaster area after $100 floor (not covered by insurance) $53,200
Home mortgage interest (loan qualifies as acquisition indebtedness) 21,280
Credit card interest 1,064
Property taxes on home 16,300
Charitable contributions 28,700
State income tax 18,000
Tax return preparation fees 1,200
Round your intermediate computations to nearest whole dollar.

Required:
The amount of itemized deductions the Gibsons may claim for the year is?

Answer 1

Answer:

$56,130

Explanation:

Calculation to determine what the amount of itemized deductions the Gibsons may claim for the year is

Stuart and Pamela Gibson

Casualty loss $17,430

[$53,200 – (10% × $357,700)]

Home mortgage interest 21,280

State tax 10,000

(18,000 income and 16,300 property

Limited to 10,000)

Charitable Contributions 28,700

Total itemized deductions $56,130

Therefore the amount of itemized deductions the Gibsons may claim for the year is $56,130