Question - Compute the Crosses total itemized deductions and prepare their schedule A.
Marcus (ssn 397-73-8399) and Debra Cross own three homes. Information regarding the amount of acquisition indebtedness, as well as interest and taxes paid on each home during the year is as follows.
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Acquisition Debt
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Interest paid
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Taxes paid
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Main home
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$240,000
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$18,330
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$2,400
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Vacation home #1
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300,000
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18,583
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2,800
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Vacation home #2
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350,000
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19,044
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3,400
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During 2012 the crosses made cash gifts totaling $12,000 to various qualified public charities. The Crosses gifted 150 shares of stock to their church during 2012. They purchased 100 shares of the stock for $10 a share in 2008. The other 50 shares were purchased earlier in 2012 for $18 a share. At the times the shares were donated to the church, their fair market value was $24 a share. The Crosses only other itemized deductions for 2012 were $4,240 that their employers withheld from their paychecks for state income taxes. The Crosses AGI for 2012 is $216,952. Compute the Crosses total itemized deductions and prepare their schedule A.