Colin (Age 40) Is Single, Itemizes His Deductions, and Has

question 107

Multiple Choice

Colin (age 40) is single, itemizes his deductions, and has AGI of $100,000. Colin provided the following information about his cash expenditures for 2018: Interest on American Express card 1,200
Points to refinance his home for 10 years at the end of December 2,600
Mortgage interest payments on $250,000 principal amount 11,800
Real estate taxes 2,100
State income taxes withheld on salary 5,400
Additional state income tax estimated payment 1,200
Contribution to Republican Party 2,000
Contribution to United Way 500
If Colin itemizes, what are his total itemized deductions in 2018:

• A) $18,100
• B) $21,000
• C) $24,200
• D) $27,000

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Definitions:

Memo Format

A structured method of communication typically used within organizations to convey information or directives in a concise manner.

Direct Approach

A communication style that involves stating the main point or objective at the beginning, often used in clear and straightforward situations.

Indirect Approach

A communication strategy that involves presenting information in a less straightforward manner, often used to soften the delivery of sensitive or complex messages.

Businesspeople

Individuals engaged in commercial, industrial, or professional activities, aiming to achieve economic or organizational goals.