following taxes during the year: Tax on residence (for the period from January 1 through December 31) State motor vehicle tax (based on the value of the personal use automobile) State sales tax State income tax $6,000 500 3,500 3,000 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? a. $3,000 . $7,000 c. $10,000 d. $13,000 e. None of the above. 200

SWFT Individual Income Taxes
43rd Edition
ISBN:9780357391365
Author:YOUNG
Publisher:YOUNG
Chapter10: Deductions And Losses: Certain Itemized Deductions
Section: Chapter Questions
Problem 2BCRQ
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38. Nancy paid the following taxes during the year:
Tax on residence (for the period from January 1 through December 31)
State motor vehicle tax (based on the value of the personal use automobile)
State sales tax
State income tax
$6,000
500
3,500
3,000
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?
E
a. $3,000
b. $7,000
c. $10,000
d. $13,000
e. None of the above.
360
Transcribed Image Text:38. Nancy paid the following taxes during the year: Tax on residence (for the period from January 1 through December 31) State motor vehicle tax (based on the value of the personal use automobile) State sales tax State income tax $6,000 500 3,500 3,000 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? E a. $3,000 b. $7,000 c. $10,000 d. $13,000 e. None of the above. 360
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