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7 May, 09:12

Sonia paid the following taxes during the year: Taxes on residence (for the period from March 1 through August 31) $5,250 State motor vehicle tax (based on the value of the personal use automobile) 430 State income tax 3,050 State and local sales taxes 3,500 Sonia sold her personal residence on June 30, under an agreement in which the real estate taxes were not prorated between the buyer and the seller. What amount qualifies as a deduction from AGI for Sonia?

a. $9,130

b. $7,382

c. $5,382

d. $9,180

e. None of these choices are correct.

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Answers (1)
  1. 7 May, 12:31
    0
    The amount that qualifies as a deduction from AGI for Sonia is B) $7382

    Explanation:

    From March 1 to August 31, total number of days are 184

    Sonia sold her residence on June 30, so the total number of days between March 1 to June 30 is 121.

    Therefore the tax on residence would be =

    121 / 184 x $ 5250

    =.657608 X $5250

    = $3452.445

    Now adding this amount with state motor vehicle tax and state and local sales taxes,

    = $3452.445 + $430 + $3500

    = $ 7382.445

    = $7382 (approximate)

    Since this amount of $7382 is higher than the state income tax, then this amount will qualify as a deduction from AGI for Sonia.
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