This Year Norma, a Single Taxpayer, Paid $11,200 of Real

question 47

Multiple Choice

This year Norma, a single taxpayer, paid $11,200 of real estate taxes on her personal residence and 9,500 of state income taxes. Which of the following is a true?

• A) Norma can deduct $11,200 of real estate taxes as an itemized deduction.
• B) Norma can deduct $9,500 of state income taxes as a for AGI deduction.
• C) Norma can deduct $10,000 of taxes as an itemized deduction.
• D) Even if Norma has no other itemized deductions, she should claim the standard deduction.
• E) None of the choices are correct.

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Definitions:

Dividend Reinvestment Plans

Programs that allow investors to automatically reinvest their cash dividends into additional shares or fractional shares of the underlying stock.

Open Market

A freely competitive market where buyers and sellers can engage in transactions with minimal government intervention.

Debt Ratio

A financial ratio that measures the extent of a company's or individual's leverage in relation to the assets they own.

Transaction Costs

Expenses incurred when buying or selling securities, including commissions and the bid-ask spread.