Charles has AGI of $45,000 and has made the following payments related to (1) land he inherited from his deceased aunt and (2) a personal vacation taken last year. State inheritance tax on the land County real estate tax on the land School district tax on the land $ 1,220 2,330 954 City special assessment on the land (new curbs and gutters) State tax on airline tickets (paid on vacation) Local hotel tax (paid during vacation) 957 216 293
Charles has AGI of $45,000 and has made the following payments related to (1) land he inherited from his deceased aunt and (2) a personal vacation taken last year. State inheritance tax on the land County real estate tax on the land School district tax on the land $ 1,220 2,330 954 City special assessment on the land (new curbs and gutters) State tax on airline tickets (paid on vacation) Local hotel tax (paid during vacation) 957 216 293
Chapter3: Tax Formula And Tax Determination; An Overview Of property Transactions
Section: Chapter Questions
Problem 48P
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![Required information
[The following information applies to the questions displayed below.]
Charles has AGI of $45,000 and has made the following payments related to (1) land he inherited from his deceased aunt
and (2) a personal vacation taken last year.
State inheritance tax on the land
County real estate tax on the land
School district tax on the land
$ 1,220
2,330
954
City special assessment on the land (new curbs and
gutters)
State tax on airline tickets (paid on vacation)
Local hotel tax (paid during vacation)
957
216
293
Calculate the amount of taxes Charles may include in his itemized deductions for the year under the following
circumstances: (Leave no answer blank. Enter zero if applicable.)
b. Suppose that Charles holds the land for rent.
Deductible taxes from AGI](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff2db349d-44e2-4dc0-ad50-be44fa6802da%2F21106b81-d1fb-4690-ad65-d23f4b21b105%2Fkubb20t_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Charles has AGI of $45,000 and has made the following payments related to (1) land he inherited from his deceased aunt
and (2) a personal vacation taken last year.
State inheritance tax on the land
County real estate tax on the land
School district tax on the land
$ 1,220
2,330
954
City special assessment on the land (new curbs and
gutters)
State tax on airline tickets (paid on vacation)
Local hotel tax (paid during vacation)
957
216
293
Calculate the amount of taxes Charles may include in his itemized deductions for the year under the following
circumstances: (Leave no answer blank. Enter zero if applicable.)
b. Suppose that Charles holds the land for rent.
Deductible taxes from AGI
![Required information
[The following information applies to the questions displayed below.]
Charles has AGI of $45,000 and has made the following payments related to (1) land he inherited from his deceased aunt
and (2) a personal vacation taken last year.
State inheritance tax on the land
County real estate tax on the land
School district tax on the land
$ 1,220
2,330
954
City special assessment on the land (new curbs and
gutters)
State tax on airline tickets (paid on vacation)
Local hotel tax (paid during vacation)
957
216
293
Calculate the amount of taxes Charles may include in his itemized deductions for the year under the following
circumstances: (Leave no answer blank. Enter zero if applicable.)
a. Suppose that Charles holds the land for appreciation.
X Answer is complete but not entirely correct.
Deductible taxes from
$
AGI](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff2db349d-44e2-4dc0-ad50-be44fa6802da%2F21106b81-d1fb-4690-ad65-d23f4b21b105%2F2ktxtnm_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Charles has AGI of $45,000 and has made the following payments related to (1) land he inherited from his deceased aunt
and (2) a personal vacation taken last year.
State inheritance tax on the land
County real estate tax on the land
School district tax on the land
$ 1,220
2,330
954
City special assessment on the land (new curbs and
gutters)
State tax on airline tickets (paid on vacation)
Local hotel tax (paid during vacation)
957
216
293
Calculate the amount of taxes Charles may include in his itemized deductions for the year under the following
circumstances: (Leave no answer blank. Enter zero if applicable.)
a. Suppose that Charles holds the land for appreciation.
X Answer is complete but not entirely correct.
Deductible taxes from
$
AGI
Expert Solution
Step 1
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- a) Calculate the amount of deductible taxes if Charles holds the lands for appreciation.
|
Particulars |
Amount |
|
Country real estate tax on the land |
$2,330 |
|
School district tax on land |
$954 |
|
Total deductible tax |
$3,284 |
The inheritance tax, airline tax and the total tax rate are non-deductible personal expenses. The special assessment is also not deductible because it is capitalized to the value of the property.
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Follow-up Question
Charles has AGI of $45,000 and has made the following payments related to (1) land he inherited from his deceased aunt and (2) a personal vacation taken last year.
| State inheritance tax on the land | $1,220 |
|---|---|
| County real estate tax on the land | 2,330 |
| School district tax on the land | 954 |
| City special assessment on the land (new curbs and gutters) | 957 |
| State tax on airline tickets (paid on vacation) | 216 |
| Local hotel tax (paid during vacation) | 293 |
Calculate the amount of taxes Charles may include in his itemized deductions for the year under the following circumstances:
Note: Leave no answer blank. Enter zero if applicable.
b. Suppose that Charles holds the land for rent.
Solution
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