Problem: Bob, who is single had AGI of $400,000 in 2006. He incurred the following expenses & losses during the year.
Medical expenses before 7.5% of AGI limitation $39,500
State & local income taxes $5,200
Real Estate taxes $4,400
Home mortgage interest $5,400
Charitable contributions $4,800
Casualty loss before 10% limitation (after $100 floor) $47,000
Unreimbursed employee expense subject to 2%-of-AGI limit $8,900
Gambling losses (Charles had $7,400 of gambling income) $9800
Compute Bob's itemized deductions before & after the overall limitation.