We already know thatIan and Isabella’s (federal) gross income for 2020 is $101,000and their AGI is $99,000Please Loot at the image and find out1. What is the amount of Ian and Isabella’s total itemized deductions in 2020 (including the deductible taxes of $10,000 and all other itemized deductions)? (*Note: the answer is not $13,000 or $15,000)2. What is Ian and Isabella's 2020 taxable income? They have no QBI deduction. lan and Isabella paid the following expenses in 2020:• Federal income taxes withheld on wages: $9,000• State & local income taxes: $8,000• Property taxes on principal residence: $5,000• Sales tax: $1,000• Interest on credit card used for personal travel: $4,500• Interest on $350,000 mortgage used to purchase principal residence: $2,000• Interest on $20,000 home-equity loan used to improve their principal residence:$1,000• Deductible student loan interest: $2,000• Deductible medical expenses (this is the amount after the % of AGI floor hasbeen applied): $1,000• Unreimbursed employee business expenses (job supplies): $750lan and Isabella's home is worth $550,000. They have proper records to substantiateall expenses.

The assessment of taxable income includes identification of type of taxpayer and his filling status.…

Answered: . What is the amount of Ian and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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We already know that

Ian and Isabella’s (federal) gross income for 2020 is $101,000

and their AGI is $99,000

Please Loot at the image and find out

1. What is the amount of Ian and Isabella’s total itemized deductions in 2020 (including the deductible taxes of $10,000 and all other itemized deductions)? (*Note: the answer is not $13,000 or $15,000)

2. What is Ian and Isabella's 2020 taxable income? They have no QBI deduction.

lan and Isabella paid the following expenses in 2020:
• Federal income taxes withheld on wages: $9,000
• State & local income taxes: $8,000
• Property taxes on principal residence: $5,000
• Sales tax: $1,000
• Interest on credit card used for personal travel: $4,500
• Interest on $350,000 mortgage used to purchase principal residence: $2,000
• Interest on $20,000 home-equity loan used to improve their principal residence:
$1,000
• Deductible student loan interest: $2,000
• Deductible medical expenses (this is the amount after the % of AGI floor has
been applied): $1,000
• Unreimbursed employee business expenses (job supplies): $750
lan and Isabella's home is worth $550,000. They have proper records to substantiate
all expenses.

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