Taxes in itemizing deductions from agi


During the current year, Vijay, a self-employed individual, paid the following amounts:

Real estate tax on Kansas residence $3,400
State income tax 1,900
Real estate taxes on land in Costa Rica (held as an investment) 1,100
Gift tax paid on gift to daughter 1,500
State sales taxes 1,950
State occupational license fee 250
Property tax on value of his automobile (used 100% for business) 450

What is the maximum amount Vijay can claim as taxes in itemizing deductions from AGI?

a. $6,450.

b. $6,700.

c. $6,900.

d. $7,150.

e. None of the above.

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Accounting Basics: Taxes in itemizing deductions from agi
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