1. Victor, a calendar year taxpayer, owns 100 shares of AB Corporation stock, which was purchased three years ago for $5,000. Victor sells all 100 shares on December 27, of the current year, for $4,000 and on January 5, of the following year, purchases 60 shares of AB Corporation stock. Victor's recognized loss will be?
2. Arun paid the following taxes this year:
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Real estate taxes on rental property he owns
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$4,000
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Real estate taxes on his own residence
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3,600
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Federal income taxes
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8,000
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State income taxes
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3,400
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Local city income taxes
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500
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What amount can Arun deduct as an itemized deduction on his tax return?