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Charles has AGI of $39,500 and has made the following payments related to (1) land he inherited from his deceased aunt and (2) a personal vacation taken last year. |
| State inheritance tax on the land | $ | 1,360 |
| County real estate tax on the land | 1,510 | |
| School district tax on the land | 795 | |
| City special assessment on the land (replacing curbs and gutters) | 930 | |
| State tax on airline tickets (paid on vacation) | 333 | |
| Local hotel tax (paid during vacation) | 268 | |
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Calculate the amount of taxes Charles may include in his itemized deductions for the year under the following circumstances: |
| a. | Suppose that Charles holds the land for appreciation. |
DEDUCTIBLE TAXES FROM AGI?
| b. | Suppose Charles rents out the land. |
DEDUCTUBILE TAXES FROM AGI?
| c. | Suppose that the vacation was actually a business trip. |
DEDUCTIBLE TAXES FROM AGI?
