McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 33

Jesse Brimhall is single.In 2011, his itemized deductions were $5,000 before considering any real property taxes he paid during the year.Jesse's adjusted gross income was $70,000 (also before considering any property tax deductions).In 2011, he paid real property taxes of $3,000 on property 1 and $1,200 of real property taxes on property 2.a.If property 1 is Jesse's primary residence and property 2 is his vacation home (he does not rent it out at all), what is his taxable income after taking property taxes into account?
b.If property 1 is Jesse's business building (he owns the property) and property 2 is his primary residence, what is his taxable income after taking property taxes into account?
c.If property 1 is Jesse's primary residence and property 2 is a parcel of land he holds for investment, what is his taxable income after taking property taxes into account?