ACC 401 Week 2 DQ2 Itemized Deductions

Itemized Deductions. From Chapter 5, complete problem 48, problem 52, and problem 53.

1. Mickey is a 12-year-old dialysis patient. Three times a week he and his mother, Sue, drive 20 miles one way to Mickeys dialysis clinic. On the way home they go 10 miles out of their way to stop at Mickeys favorite restaurant. Their total round trip is 50 miles per day. How many of those miles, if any, can Sue use to calculate an itemized deduction for transportation? Use the medical mileage rate in effect for 2010. Explain your answer.

2. On April 1, 2010, Paul sold a house to Amy. The property tax on the house, which is based on a calendar year, was due September 1, 2010. Amy paid the full amount of property tax of $2,500. Calculate both Pauls and Amys allowable deductions for the property tax. Assume a 365 day year.

3. In 2009, Sherri, a single filing taxpayer, had $3,600 in state tax withheld from her paycheck. She properly deducted that amount on her 2009 tax return as an itemized deduction that she qualified for, thus reducing her tax liability. After filing her 2009 tax return, Sherri discovered that she had overpaid her state tax by $316. She received her refund in July 2010. What must Sherri do with the $316 refund? Explain your answer.