During 2016,Hugh,a Self-Employed Individual,paid the Following Amounts

question 12

Multiple Choice

During 2016,Hugh,a self-employed individual,paid the following amounts:
Real estate tax on Iowa residence
$3,800
State income tax
1,700
Real estate taxes on land in Puerto Rico (held as an investment)
1,100
Gift tax paid on gift to daughter
1,200
State sales taxes
1,750
State occupational license fee
300
Property tax on value of his automobile (used 100% for business)
475
​
What is the maximum amount Hugh can claim as taxes in itemizing deductions from AGI?

• A)$6,600
• B)$6,650
• C)$7,850
• D)$8,625
• E)None of the above

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Definitions:

Therapy

A general term for treating psychological problems and disorders, typically involving a systematic process of intervention by a trained professional.

Posttraumatic Stress Disorder

A psychiatric disorder that can occur in people who have experienced or witnessed a traumatic event, characterized by intense, disturbing thoughts and feelings related to the experience.

Stress Disorder

A psychological condition resulting from exposure to significant stressors, characterized by symptoms such as anxiety, depression, and post-traumatic stress.

Well-To-Do Family

A description of a family that is financially prosperous or affluent, typically having resources well above the average.