@Julia. I am not sure if it comes out good on z screen, here is z copy of the question. Why the $400 not included in the answer and the explanation seems supplement my position.
Jordan Johnson is single and has adjus ted gross income of $50, 000 in the current year. Additional information is as follows :
State income taxes paid $ 2 ,000
Mortgage interest on her personal residence 9,000 Points paid on purchase of her personal residence 1,000 Deduct ible contributions to her IRA 3,000
Uninsured realized casualty loss 6,000
Tax preparation fees for her prior year income tax return 400
What amount may Jordan claim as itemized deduct ions on her current year income tax return?
1.
$12, 000
2.
$12, 900
3.
$13, 300
4.
$15, 900
Ex planation
Choice ”2” is correct.
$12 ,900 of itemized deductions for the current year, calculated as follows:
State income taxes paid
$ 2 ,000
Mortgage interest on her personal residence
9,000
Points paid on purchase of her personal residence
1,000
Deduct ible contributions to her IRA
—
Uninsured realized personal casualty loss
Tax preparation fees for her prior year income tax return
900
—
Total itemized deductions for the current year
$ 12,900
Note: The personal casualty loss is deduct ible to the extent it exceeds $100 and then 10°/o of AGI. $6000
– $100 = $5, 900.
.
