During 2018 Christian pays the following interest charges 80

During 2018, Christian pays the following interest charges: $80,000 to Citibank on his $2,000,000 mortgage incurred purchase her primary residence for $3 million in 2016. He has no home equity line of credit. $8,000 to GM Finance on the $80,000 car loan to purchase his Cadillac Escalade $4,500 to Chase on his $30,000 of credit card debt $2,500 to Sally Mae on his $40,000 of qualified student loans incurred to attend UCLA Christian has AGI of $500,000 and his only investment income is from a municipal bond that he inherited. He received $1,000 interest payment from the bond. He\'s not involved in any trade or business. Calculate the portion of his itemized deduction related to interest During 2018, Christian donates or pays the following: 100 shares of Facebook to United Way, a qualified operating 401(cX3) charity. The shares were worth $19,000 (determined by stock exchange trading price) on the date of donation and he had a basis of $4,000 in the shares from his purchase back in 2014. Ed Ruscha print to Cedars Sinai Hospital, a qualified operating 401(cX3) charity. The print was independently appraised as being worth $10,000 on the date of donation and he had a basis of $5,000 from his purchase back in 2015. Hospital agreed in writing to use the art as decoration and not to sell it for at least a decade. $1,000 to UCLA for the right to purchase great season to its football and basketball games. Calculate the portion of Christian\'s itemized deduction related to charitable contributions. Maria is a self-employed attorney. Her husband\'s only work is staying home to care for their hildun The\'rn married and file their taxes jointly. Place an A next to above the line (i.e. for

Solution

Part 1:

Calculation of itemised deduction related to Interest:

Amount in $

a. Interest on Mortgage Loan ---------------------- 80000

b. Interest on Car Loan ------------------------------ 8000

c. Interest on Credit Card Debt -------------------- 4500

d. Interest on Student Loan ------------------------- 2500

Total Interest -------------------------------------------- 95000

Part 2:

Calculation of Chritian\'s Itemized deduction related to Charitable Contributions:

a. Shares of Facebook ($19000 - $4000) --------------------- $15000

b. ED Ruscha Print ( $10000 - $5000) ------------------------- $5000

c. Right To Purchase season Games --------------------------- $1000

Total Deduction related to Charitable Contributions --------- $21000