Mr. Curtis paid the following taxes: Federal income tax $ 66,750 Federal gift tax 334 Federal employer payroll tax for housekeeper 1,202 Indiana income tax 7,500 Indiana sales tax on consumer goods and services 2,670 Local property tax on: Principal residence 3,680 Vacation home 2,340 Two automobiles 1,200 To what extent (if any) can Mr. Curtis deduct each of these payments

Question

Business

Nathen Buchanan

6 November, 12:11

Mr. Curtis paid the following taxes: Federal income tax $ 66,750 Federal gift tax 334 Federal employer payroll tax for housekeeper 1,202 Indiana income tax 7,500 Indiana sales tax on consumer goods and services 2,670 Local property tax on: Principal residence 3,680 Vacation home 2,340 Two automobiles 1,200 To what extent (if any) can Mr. Curtis deduct each of these payments

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Answers (1)

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Elle Ponce · Answer 1

Answer and Explanation:

According to the given situation Mr. Curtis income tax which is 7,500 is higher than sales which is 2,670 this results that Mr. Curtis is allowed an itemized deduction and the total of property tax is also get deducted.

So, total property tax payment = Principal residence + Vacation home + Two automobiles

= 3,680 + 2,340 + 1,200

= 7,220

Particulars Paid taxes Deductible taxes

Federal income tax $66,750

Federal gift tax $334

Federal employer payroll tax

for housekeeper $1,202

Indiana income tax $7,500 $7,500

Indiana sales tax on consumer

goods and services $2,670

Local property tax on

Principal residence $3,680 $3,680

Vacation home $2,340 $2,340

Two automobiles $1,200 $1,200