Mary paid $2,000 of state income taxes in 2016. The total sales tax she paid...

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Accounting

Mary paid $2,000 of state income taxes in 2016. The total sales tax she paid during 2016 was $4,500, which included $3,000 for the cost of a new car. How should Mary treat the taxes paid on her 2016 tax return?

Mary can deduct the greater of the $ of regular sales taxes paid or the $ of state income taxes paid, assuming she itemizes deductions. In this case, she should deduct the $ in sales tax on her 2016 Schedule A.

Jerry made the following contributions during 2016:

His synagogue (by check) $1,050
The Democratic Party (by check) 180
The American Red Cross (by check) 175
His lodge fraternal organization for tickets to (a social club) a holiday party 100

In addition, Jerry donated used furniture to the Salvation Army costing $400 with a fair market value of $200. Jerry has adjusted gross income of $45,000, the necessary written acknowledgments, and he itemizes his deductions.

Complete the Gifts to Charity section of Schedule A below to show Jerry's deduction for 2016.

Enter all amounts as positive numbers.

Gifts to Charity 16 Gifts by cash or check. If you made any gift of $250 or more,
see instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
If you made a gift and got a benefit for it, see instructions. 17 Other than by cash or check. If any gift of $250 or more, see instructions. You must attach Form 8283 if over $500 . . . . . . . 17
18 Carryover from prior year. . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
19 Add lines 16 through 18 . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . 19

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