During the current year, Robert pays the following amounts associated with his own residence:
|
Property taxes
|
$3,000
|
|
Mortgage interest
|
8,000
|
|
Repairs
|
1,200
|
|
Utilities
|
2,700
|
|
Replacement of roof
|
4,000
|
In addition, Robert paid $1,500 of property taxes on the home that is owned and used by Anne, his daughter.
a. Which of these expenses can Robert deduct?
b. Can Anne deduct the $1,500 of property taxes?
c. Are the deductions for AGI or from AGI (itemized)?
d. How could the tax consequences be improved?