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

question 34

Essay

George is single and age 56, has AGI of $265,000, and incurs the following expenditures in 2019. $$\begin{array} { l r } \text { Medical expenses (before 10\%-of-AGI floor) } & \$ 35,000 \\\text { Interest on home mortgage } & 15,500 \\\text { State income tax } & 7,500 \\\text { State sales tax } & 4,500 \\\text { Real estate tax } & 8,600 \\\text { Charitable contribution } & 6,500\end{array}$$ What is the amount of itemized deductions George may claim?

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Definitions:

Material Change

Refers to a significant alteration in the circumstances or conditions of a contract, agreement, or situation, often requiring adjustments or considerations due to its impact.

Risk

The possibility of suffering harm or loss.

Lightning Strike

A natural electrical discharge of very short duration and high voltage between a cloud and the ground or within a cloud.

Fireworks

Explosive devices used primarily for entertainment purposes, emitting light, noise, smoke, and various colors when ignited.