When Filing Their Federal Income Tax Returns, the Youngs Always

question 32

Essay

When filing their Federal income tax returns, the Youngs always claimed the standard deduction. After they purchased a home, however, they started to itemize their deductions from AGI.
a.Explain the reason for the change.
b.Suppose they purchased the home in November 2016, but did not start itemizing until tax year 2017. Why the delay as to itemizing?

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, often reported as a non-operating expense on the income statement.