medical Insurance Premiums 

Type of Documentation

James & Pamela Brock                                                              William Brock

Employer paid medical Insurance Premiums                        $10,000                                                      $1,200

 

Medical insurance premiums paid by taxpayer                    $4,000                                                           $8,000

 

Medical expenses related to eye surgery not covered by insurance17,500                                             N/A

 

Reimbursements from medical insurance carrier                             $5,200                                                     N/A

 

Prescription drug costs                                                                           $1,800                                               $2,200

 

State income taxes withheld by employer                                        $6,750                                                    $450

 

State income tax paid when filing tax return                                      $2,300                                                    N/A

 

Real estate taxes on residence                                                                $12,000                                                N/A

 

Real estate taxes on Westchester Woods property                              $5,000                                                N/A

 

Property tax on automobile                                                                     $950                                                   $375

 

Property tax on Westchester Wood’s delivery truck                           $375                                                    N/A

 

Sewer use charge                                                                                         $295                                                   N/A

 

Home mortgage interest                                                                           $14,400                                               N/A

 

Home equity interest (the loan amount is $75,000 and the difference between the FMV of the home and acquisition indebtedness is $55,000)                                                   $3,000                                                    N/A

 

Cash gifts (properly supported)                                                            $1,800                                               $1,500

 

Contribution                                                              Artwork, purchased for $8,000 and held

for five years, donated to a qualified charity

(the charity will display the artwork).

The FMV of the artwork is $27,500                                                                                     N/A

 

Contribution                                                     N/A                                   Donated land to a qualified         charity. The land was held for 22 years. The basis of the land is $4,200 and its FMV is $67,800

 

Contribution carryover from a prior year           $0                                         $14,000

 

Unreimbursed travel expenses (job related)       $700                                         $180

 

Safe deposit box                                                          $55                                            N/A

 

Tax preparation (60% allocated to Westchester Wood)   $1000                             $125

 

Required:

 

Calculate the itemized deductions and

Prepare Form 1040 Schedule A for:

James and Pamela Brock and

 

 

William Brock.