Choice "B" is correct. In answering this question, we must assume that the examiners mean to ask, "What total amount of the tax expense should the Rites claim as an itemized deduction?" Obviously, the Rites have more deductions than just those tax deductions above, or they would take advantage of the standard deduction. In any case, for cash-basis taxpayers, deductible taxes are generally deductible in the year paid, and real estate taxes, income taxes, and personal property taxes (e.g., ad valorem taxes on personal automobile) are allowable deductions. The total amount of deductions for tax expense is calculated as follows:

Choice "a" is incorrect. Real estate taxes and personal property taxes are allowable itemized deductions.
Choice "d" is incorrect. Current-year state and city income taxes withheld from a paycheck are allowable itemized deductions.
Choice "c" is incorrect. Personal property taxes (e.g., ad valorem taxes paid) are allowable itemized deductions.