Bonnie and Jake (ages 35 and 36, respectively) are married with no dependents and live...
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Accounting
Bonnie and Jake (ages 35 and 36, respectively) are married with no dependents and live in Montana (not a community property state). Because Jake has large medical expenses, they seek your advice about filing separately to save taxes. Their income and expenses for 2018 are as follows:
Bonnie's salary
$42,500
Jake's salary
26,000
Interest income (joint)
1,500
Rental loss from actively managed rental property
(23,000)
Jake's unreimbursed medical expenses
8,500
All other itemized deductions:*
Bonnie
19,000
Jake
6,400
*None subject to limitations
Determine whether Bonnie and Jake should file jointly or separately for 2018.
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