Question 1

Which of the following is a true statement?

Accepted Answer

A)  Employees can claim business expense deductions as miscellaneous itemized deductions not subject to the 2 percent of AGI limitation. 
B)  Employees cannot claim business expense deductions. 
C)  Employees can claim business expense deductions for AGI. 
D)  Employees can claim business expense deductions as miscellaneous itemized deductions subject to the 2 percent of AGI limitation. 
E)  None of the choices are true. 
A)  Employees can claim business expense deductions as miscellaneous itemized deductions not subject to the 2 percent of AGI limitation. 
B)  Employees cannot claim business expense deductions. 
C)  Employees can claim business expense deductions for AGI. 
D)  Employees can claim business expense deductions as miscellaneous itemized deductions subject to the 2 percent of AGI limitation. 
E)  None of the choices are true.

Question 2

This year Darcy made the following charitable contributions:   Determine the maximum amount of charitable deduction for Darcy's contribution of the painting if her AGI is$80,000 this year. You may assume that both the stock and painting have been owned for 10 years and that the painting was used by the State Art Museum consistent with museum's charitablepurpose.

Accepted Answer

The charitable deduction is $21,000 for

Question 3

Bunching itemized deductions is one form of tax evasion.

Accepted Answer

A) True 
 B)False

Question 4

Constance currently commutes 25 miles from her house to her existing part time job in the suburbs.Next week she begins a new full time job in another state, and this job location is 100 miles from her existing home. Because of the additional distance Constance is selling her house, and she has rented an apartment that is only 2 miles from her new job. Constance expects to pay the following moving expenses.Cost of searching for an apartment Cost of van to move furniture and possessions of the deduction.

Accepted Answer

The move qualifies for a deduction of $8

Question 5

Jenna (age 50) files single and reports AGI of $40,000. This year she has incurred the following medical expenses:   Calculate the amount of medical expenses that will be included with Jenna's other itemized deductions.

Accepted Answer

$1,910
All expenses are qualified medica

Question 6

Grace is employed as the manager of a sandwich shop. This year she earned a salary of $45,0810)0 and incurred the following expenses associated with her employment:   What amount of miscellaneous itemized deductions can Grace claim on Schedule A if these are her only miscellaneous itemized deductions?

Accepted Answer

A)  $200 if Grace was reimbursed $50 for her cooking class. 
B)  $550. 
C)  $150. 
D)  $1,050. 
E)  None of the choices are correct. 
A)  $200 if Grace was reimbursed $50 for her cooking class. 
B)  $550. 
C)  $150. 
D)  $1,050. 
E)  None of the choices are correct.

Question 7

To deduct a moving expense, the taxpayer must be employed or self-employed for aspecific amount of time after the move.

Accepted Answer

A) True 
 B)False

Question 8

In 2017, personal and dependency exemptions are $6,350 for single taxpayers.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is a true statement?

Accepted Answer

A)  All business expenses are deducted for AGI. 
B)  Congress allows self-employed taxpayers to deduct the employer portion of their self-employment tax. 
C)  To deduct expenses associated with any profit motivated activity, taxpayers must maintain a high level of involvement or effort in the activity throughout the year. 
D)  Business activities never require a relatively high level of involvement or effort from the taxpayer. 
E)  All of the choices are true. 
A)  All business expenses are deducted for AGI. 
B)  Congress allows self-employed taxpayers to deduct the employer portion of their self-employment tax. 
C)  To deduct expenses associated with any profit motivated activity, taxpayers must maintain a high level of involvement or effort in the activity throughout the year. 
D)  Business activities never require a relatively high level of involvement or effort from the taxpayer. 
E)  All of the choices are true.

Question 10

Deductible medical expenses include payments to medical care providers such as doctors, dentists, and nurses and medical care facilities such as hospitals.

Accepted Answer

A) True 
 B)False

Question 11

Clark is a registered nurse and full time employee of the Hays Hospital. To maintain his nursing license Clark has incurred the following expenses:   Clark was reimbursed $1,250 of his expenses from his Hays Hospital accountable reimbursement plan. What amount can he include with his remaining itemized deductions if his AGI this year is$52,000?

Accepted Answer

$1,010 = [($1,650 + $400 + $80

Question 12

This fall, Josh paid $5,000 for his tuition and fees at State University (a qualifiededucation institution). Assume that Josh is Marsha and Jeff's son and that Marsha and Jeff claim Josh as a dependent. Marsha and Jeff's modified AGI is $100,000. How much of Josh's $5,000 tuition and fees payments can Marsha and Jeff deduct this year?(Assume the 2016 rules apply for purposes of the qualified education expense deduction.)

Accepted Answer

A)  Marsha and Jeff can deduct $2,000 for AGI. 
B)  Marsha and Jeff can deduct $5,000 for AGI. 
C)  Marsha and Jeff can deduct $2,500 for AGI. 
D)  Marsha and Jeff can deduct $4,000 for AGI. 
E)  None - the tuition is not deductible by Marsha and Jeff. 
A)  Marsha and Jeff can deduct $2,000 for AGI. 
B)  Marsha and Jeff can deduct $5,000 for AGI. 
C)  Marsha and Jeff can deduct $2,500 for AGI. 
D)  Marsha and Jeff can deduct $4,000 for AGI. 
E)  None - the tuition is not deductible by Marsha and Jeff.

Question 13

Misti purchased a residence this year. Misti is a single parent and lives with her 1-year old daughter. This year, Misti received a salary of $63,000 and made the following payments:   Misti files as a head of household and claims two exemptions. Calculate her taxable income this year.

Accepted Answer

$45,550 = $63,000 −

Question 14

Which of the following is a true statement?

Accepted Answer

A)  A married filing joint taxpayer with AGI of $500,000 would not be able to deduct personal and dependency exemptions. 
B)  Personal exemptions, but not dependency exemptions, are subject to phase-out. 
C)  Itemized deductions, but not exemptions, are subject to phase-out. 
D)  At most, only 80% of exemptions are subject to phase-out. 
E)  None of the choices are true. 
A)  A married filing joint taxpayer with AGI of $500,000 would not be able to deduct personal and dependency exemptions. 
B)  Personal exemptions, but not dependency exemptions, are subject to phase-out. 
C)  Itemized deductions, but not exemptions, are subject to phase-out. 
D)  At most, only 80% of exemptions are subject to phase-out. 
E)  None of the choices are true.

Question 15

Alexandra operates a garage as a sole proprietorship. Alexandra also owns a half interest in a partnership that operates a gas station. This year Alexandra paid or reported the following expenses related to her garage and other property. Determine Alexandra's AGI for 2017.

Accepted Answer

$76,669
All of the expenses ar

Question 16

Which of the following is a miscellaneous itemized deduction that is not subject to the 2 percent of AGI floor?

Accepted Answer

A)  fees for investment advice. 
B)  employee business expenses. 
C)  gambling losses to the extent of gambling winnings. 
D)  tax preparation fees. 
E)  All of the choices are subject to the 2 percent of AGI floor limit. 
A)  fees for investment advice. 
B)  employee business expenses. 
C)  gambling losses to the extent of gambling winnings. 
D)  tax preparation fees. 
E)  All of the choices are subject to the 2 percent of AGI floor limit.

Question 17

Opal fell on the ice and injured her hip this winter. As a result she paid $3,000 for a visit to the hospital emergency room and $750 for follow-up visits with her doctor. While she recuperated, Opal paid $500 for prescription medicine and $600 to a therapist forrehabilitation. Insurance reimbursed Opal $1,200 for these expenses. What is the amount of Opal's qualifying medical expense?

Accepted Answer

A)  $3,750. 
B)  $3,650. 
C)  $3,000. 
D)  $4,850. 
E)  All of the choices are correct. 
A)  $3,750. 
B)  $3,650. 
C)  $3,000. 
D)  $4,850. 
E)  All of the choices are correct.

Question 18

Which of the following costs are deductible as an itemized medical expense?

Accepted Answer

A)  Medical expenses incurred to prevent disease. 
B)  The cost of prescription medicine and over-the-counter drugs. 
C)  Medical expenses reimbursed by health insurance. 
D)  The cost of elective cosmetic surgery. 
E)  None of the costs are deductible. 
A)  Medical expenses incurred to prevent disease. 
B)  The cost of prescription medicine and over-the-counter drugs. 
C)  Medical expenses reimbursed by health insurance. 
D)  The cost of elective cosmetic surgery. 
E)  None of the costs are deductible.

Question 19

Which of the following is a true statement?

Accepted Answer

A)  Business deductions are one of the most common deductions for AGI but they are not readily visible on the front of Form 1040. 
B)  Unreimbursed employee business expenses are deductible as miscellaneous itemized deductions. 
C)  With one exception, investment expenses are deductible as itemized deductions. 
D)  The distinction between business and investment expenses is critical for determining whether a deduction is claimed above the line (for AGI) or below the line (itemized). 
E)  All of the choices are true. 
A)  Business deductions are one of the most common deductions for AGI but they are not readily visible on the front of Form 1040. 
B)  Unreimbursed employee business expenses are deductible as miscellaneous itemized deductions. 
C)  With one exception, investment expenses are deductible as itemized deductions. 
D)  The distinction between business and investment expenses is critical for determining whether a deduction is claimed above the line (for AGI) or below the line (itemized). 
E)  All of the choices are true.

Question 20

Simone donated a landscape painting (tangible capital gain property) to a library, apublic charity. She purchased the painting five years ago for $50,000, and on the date of the gift, it had a fair market value of $200,000. What is her maximum charitable contribution deduction for the year if her AGI is $300,000 (before considering theitemized deduction phase-out)?

Accepted Answer

A)  $100,000. 
B)  $150,000. 
C)  $90,000 if the library uses the painting in its charitable purpose. 
D)  $200,000. 
E)  None of the choices are correct. 
A)  $100,000. 
B)  $150,000. 
C)  $90,000 if the library uses the painting in its charitable purpose. 
D)  $200,000. 
E)  None of the choices are correct.

Which of the following is a true statement?

Bunching itemized deductions is one form of tax evasion.

Jenna (age 50) files single and reports AGI of $40,000. This year she has incurred the following medical expenses: Calculate the amount of medical expenses that will be included with Jenna's other itemized deductions.

Grace is employed as the manager of a sandwich shop. This year she earned a salary of $45,0810)0 and incurred the following expenses associated with her employment: What amount of miscellaneous itemized deductions can Grace claim on Schedule A if these are her only miscellaneous itemized deductions?

To deduct a moving expense, the taxpayer must be employed or self-employed for aspecific amount of time after the move.

In 2017, personal and dependency exemptions are $6,350 for single taxpayers.

Which of the following is a true statement?

Deductible medical expenses include payments to medical care providers such as doctors, dentists, and nurses and medical care facilities such as hospitals.

Misti purchased a residence this year. Misti is a single parent and lives with her 1-year old daughter. This year, Misti received a salary of $63,000 and made the following payments: Misti files as a head of household and claims two exemptions. Calculate her taxable income this year.

Which of the following is a true statement?

Alexandra operates a garage as a sole proprietorship. Alexandra also owns a half interest in a partnership that operates a gas station. This year Alexandra paid or reported the following expenses related to her garage and other property. Determine Alexandra's AGI for 2017.

Which of the following is a miscellaneous itemized deduction that is not subject to the 2 percent of AGI floor?

Which of the following costs are deductible as an itemized medical expense?

Which of the following is a true statement?

An Introduction to Tax

Tax Compliance, the Irs, and Tax Authorities

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Exemptions, and Filing Status

Gross Income and Exclusions

Investments

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Compensation

Retirement Savings and Deferred Compensation

Tax Consequences of Home Ownership

Entities Overview

Corporate Operations

Accounting for Income Taxes

Corporate Taxation: Nonliquidating Distributions

Corporate Formation, Reorganization, and Liquidation

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

State and Local Taxes

The US Taxation of Multinational Transactions

Transfer Taxes and Wealth Planning

Filters

Exam 6: Individual Deductions

Which of the following is a true statement?

Bunching itemized deductions is one form of tax evasion.

Jenna (age 50) files single and reports AGI of $40,000. This year she has incurred the following medical expenses: Calculate the amount of medical expenses that will be included with Jenna's other itemized deductions.

To deduct a moving expense, the taxpayer must be employed or self-employed for aspecific amount of time after the move.

In 2017, personal and dependency exemptions are $6,350 for single taxpayers.

Which of the following is a true statement?

Deductible medical expenses include payments to medical care providers such as doctors, dentists, and nurses and medical care facilities such as hospitals.

Misti purchased a residence this year. Misti is a single parent and lives with her 1-year old daughter. This year, Misti received a salary of $63,000 and made the following payments: Misti files as a head of household and claims two exemptions. Calculate her taxable income this year.

Which of the following is a true statement?

Alexandra operates a garage as a sole proprietorship. Alexandra also owns a half interest in a partnership that operates a gas station. This year Alexandra paid or reported the following expenses related to her garage and other property. Determine Alexandra's AGI for 2017.

Which of the following is a miscellaneous itemized deduction that is not subject to the 2 percent of AGI floor?

Which of the following costs are deductible as an itemized medical expense?

Which of the following is a true statement?

An Introduction to Tax

Tax Compliance, the Irs, and Tax Authorities

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Exemptions, and Filing Status

Gross Income and Exclusions

Investments

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Compensation

Retirement Savings and Deferred Compensation

Tax Consequences of Home Ownership

Entities Overview

Corporate Operations

Accounting for Income Taxes

Corporate Taxation: Nonliquidating Distributions

Corporate Formation, Reorganization, and Liquidation

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

State and Local Taxes

The US Taxation of Multinational Transactions

Transfer Taxes and Wealth Planning

Filters