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
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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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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.