Jordan is a manager at Big Box Corporation. His Form W-2 wages are $ 68,000 and federal income tax withheld is $ 8,300. The correct payroll taxes were withheld. Diana worked at a local department store for the first half of the year. Her Form W-2 wages are $ 40,000 and federal income tax is $ 3,300. The correct payroll taxes were also withheld. The Diego family paid $ 9,200 interest on their home mortgage( reported to them by the mortgage company on Form 1098). The Diego family also owns a vacation home in Breckenridge, Colorado, for which they paid $ 4,100 of mortgage interest.( This is qualified mortgage interest for a second home.) The Diego family paid real estate taxes on their principal residence of $ 3,400, $ 2,000 of real estate taxes on their vacation home and $ 3,200 of sales taxes during the year. The vacation home in Breckenridge was rented out for 120 days during the year for which they received $ 12,000 in rental income. Jordan and Diana made significant decisions such as approving new tenants while a local management company handled the day-to-day needs. The Diego family used it for 30 days for a personal vacation during the year. Other expenses for the year for this vacation home( excluding interest and taxes mentioned above) were: $ 700 for real estate management fees paid to a local agent who handles the rental of the property, insurance expense $ 2,200, repairs expense $ 500, and utilities expense $ 1,800. Their depreciation expense for the rental use of this property for the year is $ 1,455. They use the IRS formula for allocating interest and taxes. The Diego family contributed $ 3,000 cash to their church and they have the necessary documentation for this contribution. Jordan had the following employment-related expenses that were not reimbursed by his employer: Jordan drove his BMW( which he purchased four years ago on November 18) a total of 12,000 miles during the year. He drove 4,800 miles while conducting business during the first half of the year. In July, the firm purchased several hybrid autos that the architects were then required to use for all business travel rather than their personal