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Problem $3$: Deductions for Personal Activities

Robert and Chris Jones are married and report AGI of $$400,000$ in $2023.$ They also provided the following information about their expenditures throughout the year:

Medical Treatment for Robert

$40,000$

Purchase of Over the counter allergy Medication

$1,000$

Estimated state Income Taxes

$3,000$

Property taxes on Personal Residence

$1,500$

Property Taxes on Second Home

$2,000$

Utilities for Second Home

$7,500$

Mortgage Interest on principal residence

$60,000$

Contributions to Health Savings Account

$7,500$

Cash Contributions to qualified charitable organizations $,65,000$

OTHER INFORMATION

During the year Robert received a refund from his medical provider of $$5,000$ for payments made during $2023.$

The mortgage interest can be broken down as follows: $$50,000$ for their personal residence and $$10,000$ for their second home. Their Personal residence was purchased in $2015$ and had an average mortgage balance of $$1,000,000$ for the entire year. The second home was purchased in $2016$ and had an average mortage balance of $$500,000$ for the entire year.

The second home was rented for a total of $10$ days and generated revenues of $$50,000.$ It was used personally for $120$ days and vacant the remainder of the year. The taxpayer uses the court method for any expense allocations.

During the year they made a contribution of Walmart stock to a qualified charitable organization they had originally purchased in $2018$ for $$10,000.$ The fair market value of the stock at the date of contribution was $$40,000.$

Required: What are the total allowable itemized deductions for $2023?$

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