Denise, a single, cash-method taxpayer, paid the following taxes in the current year: Denise's employer withheld $6,000 for federal income taxes, $1,600 for state income taxes, and $3,600 for FICA from her paychecks. Denise purchased a new car and paid $720 in sales tax and $100 for the license. The car's FMV was $24,000 and it weighed 3,000 pounds. The county also assessed a property tax on the car. The tax was 2% of the car's value and $10 per hundredweight.Denise uses the car 100% of the time for personal purposes. Denise sold her house on May 1 of the current year. The county's property tax on the home for the year is $2,300, payable on February 1 of the current year. The county's real property tax year is the calendar year. Denise's AGI for the year is $61,000 and her other itemized deductions exclusive of taxes are $9,900 (disregard any leap year). Read the requirements. Requirement a. What is Denise's deduction for taxes in the current year? (Assume that the purchaser owns the house on the date of the sale. Round your answers to the nearest dollar. If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.)

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 55P

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Denise, a single, cash-method taxpayer, paid the following taxes in the current year:

Denise's employer withheld $6,000 for federal income taxes, $1,600 for state income taxes, and $3,600 for FICA from her paychecks. Denise purchased a new car and paid $720 in sales tax and $100 for the license. The car's FMV was $24,000 and it weighed 3,000 pounds. The county also assessed a property tax on the car. The tax was 2% of the car's value and

$10 per hundredweight.Denise uses the car 100% of the time for personal purposes. Denise sold her house on May 1 of the current year. The county's property tax on the home for the year is $2,300, payable on February 1 of the current year. The county's real property tax year is the calendar year.

Denise's AGI for the year is $61,000 and her other itemized deductions exclusive of taxes are $9,900 (disregard any leap year).

Read the requirements.

Requirement a. What is Denise's deduction for taxes in the current year? (Assume that the purchaser owns the house on the date of the sale. Round your answers to the nearest dollar. If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.)

Tax type	Amount




Total deduction for taxes

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