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18 January, 02:42

Nancy paid the following taxes during the year: Tax 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 sales tax 3,500 State income tax 3,050 Nancy sold her personal residence on June 30 of this year 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 Nancy?

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  1. 18 January, 06:14
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    [ (121 days/184 days * $5,250) + $430 + $3,500] = $7,382. Nancy chooses to claim a deduction for the (higher) state sales tax rather than the state income tax.
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