In 2013,David,age 65,had adjusted gross income of $30,000.During the year he paid the following medical expenses: $\begin{array}{lr} \text { Frescription medicines } & \$ 200 \\ \text { Doctors } & \$ 2,100 \\ \text { Medical care insurance } & \$ 400 \\ \text { Crutches for a broken leg } & \$ 100 \end{array}$ What amount can David deduct as medical expenses after the adjusted gross income limitation)in calculating his itemized deductions for 2013?

A) $2,800 B) $2,250 C) $550 D) $450 E) None of the above A) $2,800 B) $2,250 C) $550 D) $450 E) None of the above

Exam 5: Itemized Deductions and Other Incentives

Educational expenses are deductible as a miscellaneous itemized deduction even if the education is required to meet the minimum requirements for the taxpayer's current job.

Free

(True/False)

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Question 1

Correct Answer:

Verified

False

Which of the following taxes is not deductible as an itemized deduction?

Free

(Multiple Choice)

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Question 2

Correct Answer:

Verified

If the taxpayer fails to locate a job,job hunting expenses are not deductible.

Free

(True/False)

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(93)

Question 3

Correct Answer:

Verified

False

For 2013,Eugene and Linda had adjusted gross income of $30,000.Additional information for 2013 is as follows: Cash contribution to church $\quad\$ 1,500$ Tuition paid to a parochial school $\quad\$ 1,200$ Contribution to a qualified charity $\quad\$ 250$ Cash contribution to a needy family $\quad\$ 100$ What is the maximum amount that they can use as a deduction for charitable contributions for 2013?

(Multiple Choice)

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Question 4

Harvey itemized deductions on his 2012 income tax return.Harvey plans to itemize deductions again in 2013 and the following information is available regarding state and local income taxes: Taxes withheld in $2013 \quad \quad \quad \quad \$ 2,500$ Refund received in 2013 of 2012 tax $\quad \$ 500$ Assessment paid in 2013 of 2011 tax $\quad \$ 300$ Assuming he elects to deduct state and local income taxes,the above information should be reported by Harvey in his 2013 tax return as:

(Multiple Choice)

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Question 5

What is the maximum amount of home equity debt not acquisition debt)on which interest is fully deductible?

(Multiple Choice)

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Question 6

The cost of uniforms is deductible only by self-employed taxpayers.

(True/False)

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Question 7

Melissa took a $1,500 distribution from her educational savings account and used $1,200 to pay for qualified education expenses.Before the distribution,Melissa's account balance was $4,000,of which $1,000 was earnings.Calculate the following: a.The tax-free return of capital b.Her new adjusted basis for her savings account c.Distribution of earnings potentially subject to tax d.The excludable portion of the earnings e.The taxable portion of her earnings

(Essay)

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Question 8

The amount of a special assessment charged to residents for the installation of sidewalks on their street is not deductible on Schedule A as property taxes.

(True/False)

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Question 9

Bill has a mortgage loan on his personal residence.He decides to pay 24 months of interest in advance on July 1,2013.The total advanced interest payment is $72,000.How much of the advance interest payment can he deduct in 2013?

(Multiple Choice)

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Question 10

Don gives his old car to a qualified charity.The charity then sells the car at an auction.Describe the tax treatment of the donation.

(Essay)

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Question 11

Douglas and Dena paid the following amounts of interest during 2013: Qualified home mortgage interest \ 13,000 Other consumer interest \ 5,000 Investment interest \ 10,000 no investment income) a.Calculate the amount of their allowable deduction for investment interest for 2013. b.Calculate the amount of Douglas and Dena's total allowable deduction for interest for 2013.

(Essay)

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Question 12

In 2013,David,age 65,had adjusted gross income of $30,000.During the year he paid the following medical expenses: Frescription medicines \ 200 Doctors \ 2,100 Medical care insurance \ 400 Crutches for a broken leg \ 100 What amount can David deduct as medical expenses after the adjusted gross income limitation)in calculating his itemized deductions for 2013?

(Multiple Choice)

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Question 13

Andy borrows $20,000 to invest in bonds.During 2013,his interest on the loan is $2,000.Andy's interest income from the bonds is $400 and his investment expenses are $300. a.Calculate Andy's itemized deduction for investment interest for this year. b.Is Andy entitled to a deduction in future years?

(Essay)

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Question 14

For 2013,the investment interest expense deduction is limited to the taxpayer's net investment income.

(True/False)

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Question 15

Which of the following miscellaneous deductions are subject to the 2 percent of adjusted gross income limitation?

(Multiple Choice)

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Question 16

If a taxpayer contributes a painting to a museum but reserves the right to use the painting for parties,he may not be allowed a deduction for the charitable contribution.

(True/False)

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Question 17

Gwen has written acknowledgments for each of the following 2013 charitable contributions. Cash contributions to her church $\quad \$ 1,250$ Contribution of old clothes and household goods to AMVETS, valued at thrift shop prices (original cost, $\$ 1,000$ ) $\quad\$ 200$ Gwen's estimate of the value of her time donated to a localsoup kitchen $\quad \$ 800$ Cash donated to homelesspeople asking for moneyfor food $\quad$ $\quad$ $50 What is Gwen's 2013 charitable contribution deduction?

(Essay)

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(85)

Question 18

Amy paid the following interest expense during 2013: Qualified home mortgage interest $\quad \$ 11,000$ Credit card interest $\quad\$ 1,000$ Personal bank loan interest $\quad\$ 3,000$ What is the amount of Amy's interest deduction for 2013?

(Multiple Choice)

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(84)

Question 19

The cost of a fishing license is considered a personal property tax and is deductible as an itemized deduction.

(True/False)

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(83)

Question 20

Showing 1 - 20 of 114

Educational expenses are deductible as a miscellaneous itemized deduction even if the education is required to meet the minimum requirements for the taxpayer's current job.

Which of the following taxes is not deductible as an itemized deduction?

If the taxpayer fails to locate a job,job hunting expenses are not deductible.

What is the maximum amount of home equity debt not acquisition debt)on which interest is fully deductible?

The cost of uniforms is deductible only by self-employed taxpayers.

The amount of a special assessment charged to residents for the installation of sidewalks on their street is not deductible on Schedule A as property taxes.

Bill has a mortgage loan on his personal residence.He decides to pay 24 months of interest in advance on July 1,2013.The total advanced interest payment is $72,000.How much of the advance interest payment can he deduct in 2013?

Don gives his old car to a qualified charity.The charity then sells the car at an auction.Describe the tax treatment of the donation.

Andy borrows $20,000 to invest in bonds.During 2013,his interest on the loan is $2,000.Andy's interest income from the bonds is $400 and his investment expenses are $300. a.Calculate Andy's itemized deduction for investment interest for this year. b.Is Andy entitled to a deduction in future years?

For 2013,the investment interest expense deduction is limited to the taxpayer's net investment income.

Which of the following miscellaneous deductions are subject to the 2 percent of adjusted gross income limitation?

If a taxpayer contributes a painting to a museum but reserves the right to use the painting for parties,he may not be allowed a deduction for the charitable contribution.

Amy paid the following interest expense during 2013: Qualified home mortgage interest $\quad \$ 11,000$ Credit card interest $\quad\$ 1,000$ Personal bank loan interest $\quad\$ 3,000$ What is the amount of Amy's interest deduction for 2013?

The cost of a fishing license is considered a personal property tax and is deductible as an itemized deduction.

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses, Part I

Business Income and Expenses, Part II

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Withholding, Estimated Payments, and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Exam 5: Itemized Deductions and Other Incentives

Educational expenses are deductible as a miscellaneous itemized deduction even if the education is required to meet the minimum requirements for the taxpayer's current job.

Which of the following taxes is not deductible as an itemized deduction?

If the taxpayer fails to locate a job,job hunting expenses are not deductible.

What is the maximum amount of home equity debt not acquisition debt)on which interest is fully deductible?

The cost of uniforms is deductible only by self-employed taxpayers.

The amount of a special assessment charged to residents for the installation of sidewalks on their street is not deductible on Schedule A as property taxes.

Bill has a mortgage loan on his personal residence.He decides to pay 24 months of interest in advance on July 1,2013.The total advanced interest payment is $72,000.How much of the advance interest payment can he deduct in 2013?

Don gives his old car to a qualified charity.The charity then sells the car at an auction.Describe the tax treatment of the donation.

Andy borrows $20,000 to invest in bonds.During 2013,his interest on the loan is $2,000.Andy's interest income from the bonds is $400 and his investment expenses are $300. a.Calculate Andy's itemized deduction for investment interest for this year. b.Is Andy entitled to a deduction in future years?

For 2013,the investment interest expense deduction is limited to the taxpayer's net investment income.

Which of the following miscellaneous deductions are subject to the 2 percent of adjusted gross income limitation?

If a taxpayer contributes a painting to a museum but reserves the right to use the painting for parties,he may not be allowed a deduction for the charitable contribution.

Amy paid the following interest expense during 2013: Qualified home mortgage interest $11,000\quad \$ 11,000$11,000 Credit card interest $1,000\quad\$ 1,000$1,000 Personal bank loan interest $3,000\quad\$ 3,000$3,000 What is the amount of Amy's interest deduction for 2013?

The cost of a fishing license is considered a personal property tax and is deductible as an itemized deduction.

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses, Part I

Business Income and Expenses, Part II

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Withholding, Estimated Payments, and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Amy paid the following interest expense during 2013: Qualified home mortgage interest $\quad \$ 11,000$ Credit card interest $\quad\$ 1,000$ Personal bank loan interest $\quad\$ 3,000$ What is the amount of Amy's interest deduction for 2013?