Question 1

The deduction for student loan interest has limits placed on it based on the taxpayer's AGI.

Accepted Answer

A) True 
 B)False

Question 2

What is Beth's maximum allowable deduction for the following contributions to qualified public charities during the current year if her adjusted gross income is $90,000? $\begin{array}{lrr}
\underline{\text {Stock Contributions}}&
\underline{\text {Basis }}&\underline{\text {Fair Market Value}}\ 
\text { Markum stock acquired in } 1997 & \$ 8,000 & \$ 16,000 \
\text { Dotcom stock acquired in } 1999 & \$ 7,000 & \$ 14,000 \
\text { Ford stock acquired in 2001 } & \$ 1,500 & \$ 3,000
\end{array}$

Accepted Answer

A) $45,000 
B) $33,000 
C) $27,000 
D) $16,500 
A) $45,000 
B) $33,000 
C) $27,000 
D) $16,500

Question 3

Jan and James's divorce is final on December 31 of the current year.They must file married filing separately for the tax year.

Accepted Answer

A) True 
 B)False

Question 4

All of the following are deductions for AGI except:

Accepted Answer

A) IRA contributions 
B) Student loan interest 
C) Interest on loan to purchase stocks 
D) Health Savings Account contribution 
A) IRA contributions 
B) Student loan interest 
C) Interest on loan to purchase stocks 
D) Health Savings Account contribution

Question 5

Vera and Jake (both age 45) are a married couple with AGI of $327,300 for 2019.They paid $20,000 of mortgage interest, $8,000 of unreimbursed medical expenses, $4,000 of property taxes, and $9,000 of charitable contributions for the year.How much may they claim for itemized deductions in 2019?

Accepted Answer

A) $40,220 
B) $33,000 
C) $32,520 
D) $25,000 
A) $40,220 
B) $33,000 
C) $32,520 
D) $25,000

Question 6

All of the following are a common filing status for a married person except:

Accepted Answer

A) Married filing jointly 
B) Head of household 
C) Married filing separately 
D) Surviving spouse 
A) Married filing jointly 
B) Head of household 
C) Married filing separately 
D) Surviving spouse

Question 7

Ikito's AGI was $68,000 in 2019.In August 2019, his home was damaged in a hurricane and his county was declared a federal declared disaster area, The home's fair market value was $110,000 before the storm and $70,000 after the storm.He received only $12,000 from his insurance company due to the large deductible that applies to hurricane losses.He had purchased the home five years ago for $90,000.How much may Ikito deduct as an itemized deduction for this casualty loss?

Accepted Answer

A) $0 
B) $21,100 
C) $27,900 
D) $39,900 
A) $0 
B) $21,100 
C) $27,900 
D) $39,900

Question 8

A homeowner who itemizes his or her deductions can only deduct the property taxes on his or her primary residence and one other residence.

Accepted Answer

A) True 
 B)False

Question 9

Sonjay had AGI of $60,000 in 2019 and made several charitable contributions as follows: Land donated to county for new school: FMV = $30,000; basis = $20,000
Appraisal fee for the land: $2,500
Contributions to his church: $4,000
Contributions to the Red Cross: $1,000
What is the maximum charitable contribution deduction that Sonjay could claim in 2019?

Accepted Answer

A) $30,000 
B) $27,500 
C) $25,000 
D) $24,000 
A) $30,000 
B) $27,500 
C) $25,000 
D) $24,000

Question 10

Surviving spouse status may be claimed for three years after the year of the spouse's death.

Accepted Answer

A) True 
 B)False

Question 11

For 2018-2025, the personal and dependency exemption is essentially zero.Although the deduction is suspended, the rules for determining who is a dependent may be used in other provisions (such as determining head of household status and the child tax credit).

Accepted Answer

A) True 
 B)False

Question 12

Tina is 60 and single.She has AGI of $71,000.If she paid for $9,625 in unreimbursed medical expenses, what is her medical deduction for AMTI in 2019?

Accepted Answer

A) $9,625 
B) $4,300 
C) $3,870 
D) $2,525 
A) $9,625 
B) $4,300 
C) $3,870 
D) $2,525

Question 13

Which of the following expenditures is not subject to some form of limitation on its deductibility based on AGI?

Accepted Answer

A) IRA contribution 
B) Surgery to replace a hip joint 
C) Contribution to a university endowment fund 
D) Property taxes 
A) IRA contribution 
B) Surgery to replace a hip joint 
C) Contribution to a university endowment fund 
D) Property taxes

Question 14

The tax model is the formula for how individuals report their tax liability.

Accepted Answer

A) True 
 B)False

Question 15

To be considered a dependent as a qualifying child in 2019:

Accepted Answer

A) The child can be age 24 
B) A 17-year-old child must earn less than $5,000 
C) A 21-year-old child must be a full-time student for at least 5 months during the year 
D) All of the above 
A) The child can be age 24 
B) A 17-year-old child must earn less than $5,000 
C) A 21-year-old child must be a full-time student for at least 5 months during the year 
D) All of the above

Question 16

The taxpayer must provide more than half the support for an individual to be considered a dependent.

Accepted Answer

A) True 
 B)False

Question 17

Samuel, a single individual, has adjusted gross income of $150,000 and the following itemized deductions before applicable floor limitations for 2019: $\begin{array}{llcc}
  \text {  Medical expenses} &\$17,000  \
 \text {Qualified residence acquisition interest  } &20,000\
 \text {Taxes  } &9,000\
 \text { Charitable contributions } &7,000\
 \text {Miscellaneous itemized deductions  } &5,000\
\end{array}$
 What are Samuel's itemized deductions for alternative minimum tax purposes?

Accepted Answer

A) $32,750 
B) $20,000 
C) $44,000 
D) $29,000 
A) $32,750 
B) $20,000 
C) $44,000 
D) $29,000

Question 18

In 2019, which of the following is allowed as an addition to a nonitemizer's standard deduction?

Accepted Answer

A) Sales tax on new automobile purchases 
B) $500 for real property taxes 
C) Medical expenses in excess of 10% of AGI 
D) None of the above 
A) Sales tax on new automobile purchases 
B) $500 for real property taxes 
C) Medical expenses in excess of 10% of AGI 
D) None of the above

Question 19

28 The NII tax is assessed on the greater of net investment income or modified adjusted gross income.

Accepted Answer

A) True 
 B)False

Question 20

Taxpayers can apply any excess FICA tax paid to their income tax liability.

Accepted Answer

A) True 
 B)False

The deduction for student loan interest has limits placed on it based on the taxpayer's AGI.

Jan and James's divorce is final on December 31 of the current year.They must file married filing separately for the tax year.

All of the following are deductions for AGI except:

Vera and Jake (both age 45) are a married couple with AGI of $327,300 for 2019.They paid $20,000 of mortgage interest, $8,000 of unreimbursed medical expenses, $4,000 of property taxes, and $9,000 of charitable contributions for the year.How much may they claim for itemized deductions in 2019?

All of the following are a common filing status for a married person except:

A homeowner who itemizes his or her deductions can only deduct the property taxes on his or her primary residence and one other residence.

Surviving spouse status may be claimed for three years after the year of the spouse's death.

For 2018-2025, the personal and dependency exemption is essentially zero.Although the deduction is suspended, the rules for determining who is a dependent may be used in other provisions (such as determining head of household status and the child tax credit).

Tina is 60 and single.She has AGI of $71,000.If she paid for $9,625 in unreimbursed medical expenses, what is her medical deduction for AMTI in 2019?

Which of the following expenditures is not subject to some form of limitation on its deductibility based on AGI?

The tax model is the formula for how individuals report their tax liability.

To be considered a dependent as a qualifying child in 2019:

The taxpayer must provide more than half the support for an individual to be considered a dependent.

In 2019, which of the following is allowed as an addition to a nonitemizer's standard deduction?

28 The NII tax is assessed on the greater of net investment income or modified adjusted gross income.

Taxpayers can apply any excess FICA tax paid to their income tax liability.

Introduction to Taxation

The Tax Practice Environment

Determining Gross Income

Employee Compensation

Business Expenses

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Tax-Deferred Exchanges

Taxation of Corporations

Sole Proprietorships and Flow-Through Entities

Estates, Gifts, and Trusts

Filters

Exam 5: Deductions for Individuals and Tax Determination

The deduction for student loan interest has limits placed on it based on the taxpayer's AGI.

Jan and James's divorce is final on December 31 of the current year.They must file married filing separately for the tax year.

All of the following are deductions for AGI except:

Vera and Jake (both age 45) are a married couple with AGI of $327,300 for 2019.They paid $20,000 of mortgage interest, $8,000 of unreimbursed medical expenses, $4,000 of property taxes, and $9,000 of charitable contributions for the year.How much may they claim for itemized deductions in 2019?

All of the following are a common filing status for a married person except:

A homeowner who itemizes his or her deductions can only deduct the property taxes on his or her primary residence and one other residence.

Surviving spouse status may be claimed for three years after the year of the spouse's death.

For 2018-2025, the personal and dependency exemption is essentially zero.Although the deduction is suspended, the rules for determining who is a dependent may be used in other provisions (such as determining head of household status and the child tax credit).

Tina is 60 and single.She has AGI of $71,000.If she paid for $9,625 in unreimbursed medical expenses, what is her medical deduction for AMTI in 2019?

Which of the following expenditures is not subject to some form of limitation on its deductibility based on AGI?

The tax model is the formula for how individuals report their tax liability.

To be considered a dependent as a qualifying child in 2019:

The taxpayer must provide more than half the support for an individual to be considered a dependent.

In 2019, which of the following is allowed as an addition to a nonitemizer's standard deduction?

28 The NII tax is assessed on the greater of net investment income or modified adjusted gross income.

Taxpayers can apply any excess FICA tax paid to their income tax liability.

Introduction to Taxation

The Tax Practice Environment

Determining Gross Income

Employee Compensation

Business Expenses

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Tax-Deferred Exchanges

Taxation of Corporations

Sole Proprietorships and Flow-Through Entities

Estates, Gifts, and Trusts

Filters