George Is Single and Age 56, Has AGI of $265,000

question 22

Essay

George is single and age 56, has AGI of $265,000, and incurs the following expenditures in 2014.
$\begin{array}{lr}\text { Medical expenses (before } 10 \% \text { floor) } & \$ 27,000 \\\text { Interest on home mortgage } & 15,500 \\\text { State income tax } & 7,500 \\\text { State sales tax } & 4,500 \\\text { Real estate tax } & 8,600 \\\text { Charitable contribution } & 6,500\end{array}$
What is the amount of itemized deductions George may claim?

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Definitions:

Pollution Reduction

Measures and strategies adopted to decrease the amount of pollutants released into the environment.

Pollution Permits

Licenses that allow the holder to emit a certain amount of pollution over a set time frame. They are used as part of regulatory systems to control and reduce overall pollution.

Environmental Economics

A branch of economics that studies the economic impact of environmental policies and the cost-benefit analysis of environmental changes.

Externalities

Financial implications or outcomes that impact parties not directly involved, which can either be beneficial or detrimental.