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Problem 2: Deductions for Personal Activities

Robert and Chris Jones are married and report AGI of $200,000 in 2022. They also provided the following information about their expenditures throughout the year:

Expenditures
Surgical Procedure to repair leg injury	15,000
Doctor Visits	5,000
Elective cosmetic surgery	3,000
State Income Taxes	5,000
Property Taxes on Principal residence	1,000
Property Taxes on Vacation Home	2,000
Utilities for vacation home	20,000
Local Sales tax per IRS table	500
Mortgage Interest	30,000
Investment Interest	500
Cash Contributions to qualified charitable organizations	130,000

OTHER INFORMATION

The total Mortgage interest paid can be allocated as follows: i) $20,000 from the mortgage used to purchase their principal residence in 2015. The average mortgage balance for 2022 was $900,000, ii) $10,000 for a mortgage to purchase their vacation home in 2017. The average mortgage balance for 2022 was $100,000.

The vacation home was rented for 30 days during the year and generated total income of $10,000. It was used personally for 120 days. The taxpayer uses the IRS method for any allocations.

They had total investment income during the year of $2,000. All of it represented ordinary dividends from Alphabet, Inc.

Required: What are the total allowable itemized deductions for 2022?

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