Colin (Age 40) Is Single and Itemizes His Deductions

question 98

Multiple Choice

Colin (age 40) is single and itemizes his deductions. His AGI is $100,000. Colin provided the following information about his cash expenditures for 2018: Interest on loan to purchase corporate securities $ 900
Interest on American Express card 1,200
Points to refinance his home at the end of December 2,600
Mortgage interest payments 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
What is the amount of Colin's deductible interest expense if he received $600 in corporate dividends that are taxed at the 15% tax rate?

• A) $11,800
• B) $12,400
• C) $12,700
• D) $14,400

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Definitions:

Probable Cause

A reasonable basis for believing that a crime may have been committed, which is used as a standard by law enforcement to obtain warrants for arrests and searches.

Motivated

Having a strong reason to act or accomplish something, being driven towards a goal or objective.

Satisfied Need

A requirement or necessity that has been adequately fulfilled, leading to a sense of contentment.

Individual

Refers to a single person or entity, distinguished from a group or collective.