Hugh, a Self-Employed Individual, Paid the Following Amounts During the Year

Multiple Choice

Hugh, a self-employed individual, paid the following amounts during the year: $$\begin{array} { l r } \text { Real estate tax on Iowa residence } & \$ 3,800 \\\text { State income tax } & 1,700 \\\text { Real estate taxes on a vacation home } & 2,100 \\\text { Gift tax paid on gift to daughter } & 1,200 \\\text { State sales taxes } & 1,750 \\\text { State occupational license fee } & 300 \\\text { Property tax on value of his automobile (used 100\% for business) } & 475\end{array}$$ What is the maximum amount Hugh can claim as taxes in itemizing deductions from AGI?

A) $7,650
B) $8,850
C) $9,625
D) $10,000
E) None of these