Question 1

Roberto, age 50, has AGI of $110,000 for 2019. He has medical expenses of $13,200. How much of the medical expenses can Roberto deduct on his Schedule A for 2019?

Accepted Answer

A) $0 
B) $4,950 
C) $11,000 
D) $2,200 
E) $13,200 
A) $0 
B) $4,950 
C) $11,000 
D) $2,200 
E) $13,200

Question 2

In 2019, the itemized deduction for taxes is limited to 10% of adjusted gross income.

Accepted Answer

A) True 
 B)False

Question 3

In 2019, state income taxes or state and local sales taxes, whichever is larger, may be deducted as an itemized deduction on Schedule A.

Accepted Answer

A) True 
 B)False

Question 4

Gwen has written acknowledgments for each of the following charitable contributions during the current year: $\begin{array} { l  }
 \text {Cash contributions to her church}&\$1,250 \
 \text {Contribution of used clothes and household items in good condition to }& \
 \text {AMVETS, valued at thrift shop prices (original cost, $ \$ 1,000 $ ) }&\$200 \
 \text {Gwen's estimate of the value of her time donated to a local soup kitchen }&\$800 \
 \text { Cash donated to homeless people asking for money for food}&\$75 \
\end{array}$
 What is Gwen's charitable contribution deduction for the current year?

Accepted Answer

$1,450 = $1,250 + $200. Note that the li

Question 5

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

Accepted Answer

A) $0 
B) $50,000 
C) $100,000 
D) $200,000 
E) None of the above 
A) $0 
B) $50,000 
C) $100,000 
D) $200,000 
E) None of the above

Question 6

If a Section 401(k) plan allows an employee to choose between a direct payment of compensation in cash or a contribution to the retirement plan, the plan is not a "qualified" plan.

Accepted Answer

A) True 
 B)False

Question 7

Since a contribution to an IRA is a voluntary action, a taxpayer may withdraw amounts from an IRA at any time without penalty.

Accepted Answer

A) True 
 B)False

Question 8

To deduct interest paid with respect to indebtedness, the taxpayer must be legally liable for the debt.

Accepted Answer

A) True 
 B)False

Question 9

Randy is advised by his physician to install an elevator in his residence, since he is afflicted with heart disease. The cost of installing the elevator is $10,000 and it has an estimated useful life of 10 years. He installs the elevator in January of the current year, and it increases the value of his residence by $8,000. Disregarding the limitation based on adjusted gross income, how much of the cost of the elevator may Randy take into account in determining his medical expense deduction for the current year?

Accepted Answer

A) $0 
B) $1,000 
C) $2,000 
D) $10,000 
E) None of these is correct 
A) $0 
B) $1,000 
C) $2,000 
D) $10,000 
E) None of these is correct

Question 10

In 2019, all taxpayers may make a deductible or nondeductible contribution to an IRA.

Accepted Answer

A) True 
 B)False

Question 11

Shellie, a single individual, received her Bachelor's degree in 2018, and took a job with a salary of $45,000 per year. In 2019, she paid $1,500 of interest on qualified education loans. Which of the following statements is correct?

Accepted Answer

A) The full $1,500 is deductible in arriving at adjusted gross income (AGI). 
B) If her payment had been $3,000, only $2,000 would have been deductible in arriving at AGI and the $1,000 excess would have been treated as nondeductible consumer interest. 
C) If her income had been $65,000, the deductible amount would have been phased out. 
D) Taxpayers are not allowed a deduction for education loan interest in 2019. 
A) The full $1,500 is deductible in arriving at adjusted gross income (AGI). 
B) If her payment had been $3,000, only $2,000 would have been deductible in arriving at AGI and the $1,000 excess would have been treated as nondeductible consumer interest. 
C) If her income had been $65,000, the deductible amount would have been phased out. 
D) Taxpayers are not allowed a deduction for education loan interest in 2019.

Question 12

During the current year, Mr. and Mrs. West paid the following taxes: $\begin{array}{llcc}
  \text {Property taxes on residence  } &\$1,900\
 \text { Special asses sment for installation of a sewer system in their neighborhood } &\$1,000\
 \text {  State personal property tax on their automobile (based on value)} &\$400\
 \text { Property taxes on land held for long-term appreciation } &\$600\
\end{array}$ What amount can the Wests deduct as property taxes in calculating itemized deductions for the current year?

Accepted Answer

A) $0 
B) $1,900 
C) $2,300 
D) $2,900 
E) None of these 
A) $0 
B) $1,900 
C) $2,300 
D) $2,900 
E) None of these

Question 13

Fran paid the following amounts of interest during 2019: $$\begin{array} { l r } 
\text { Qualified home mortgage interest } & \$ 7,000 \
\text { Automobile loan interest } & \$ 500 \
\text { Qualified interest on second residence } & \$ 5,000 \
\text { Credit card interest } & \$ 300
\end{array}$$ Calculate the amount of Fran's interest deduction for 2019.

Accepted Answer

$12,000 =

Question 14

Ronald donates publicly traded Microsystems stock with a basis of $2,000 and a fair market value of $20,000 to the local library, which is considered a public charity. Ronald has $30,000 of adjusted gross income, and he purchased the stock 15 years ago. How is this contribution treated on Ronald's tax return?

Accepted Answer

Ronald can deduct $9,000 on his Schedule

Question 15

If a taxpayer receives an early distribution from an IRA due to disability, he or she will not be subject to a penalty.

Accepted Answer

A) True 
 B)False

Question 16

In some cases, a taxpayer may deduct an otherwise allowable contribution to an IRA, even though the contribution is made after the close of the tax year.

Accepted Answer

A) True 
 B)False

Question 17

Stan, a single taxpayer, has $1,700 of state income taxes withheld from his wages in the current year. In the current year, he also received a $320 refund on his prior year state income tax. Stan did not itemize last year but he intends to do so this year. Stan used the sales tax estimate tables and determined his sales tax deduction amount is $1,600. What amount should Stan deduct for state taxes?

Accepted Answer

A) $0 
B) $1,380 
C) $1,600 
D) $1,700 
E) None of the above 
A) $0 
B) $1,380 
C) $1,600 
D) $1,700 
E) None of the above

Question 18

Ben is a 19-year-old single software inventor earning $200,000 a year and is not covered by a pension plan at work. How much can he put into a Roth IRA in 2019?

Accepted Answer

$0. He is over the i

Question 19

Which of the following taxpayers qualifies for the maximum traditional individual retirement account deduction for 2019?

Accepted Answer

A) Married taxpayers, neither of whom is covered by a qualified retirement plan, with total adjusted gross income, all earned, of $85,000 
B) A single taxpayer, who is covered by a qualified retirement plan, with adjusted gross income of $80,000 
C) A single taxpayer, who is not covered by a qualified retirement plan, with no earned income but with unearned income of $12,000 
D) Married taxpayers, only one of whom is covered by a qualified retirement plan, with total adjusted gross income of $200,000 
E) None of these 
A) Married taxpayers, neither of whom is covered by a qualified retirement plan, with total adjusted gross income, all earned, of $85,000 
B) A single taxpayer, who is covered by a qualified retirement plan, with adjusted gross income of $80,000 
C) A single taxpayer, who is not covered by a qualified retirement plan, with no earned income but with unearned income of $12,000 
D) Married taxpayers, only one of whom is covered by a qualified retirement plan, with total adjusted gross income of $200,000 
E) None of these

Question 20

If a taxpayer installs special equipment in their home for medical reasons, some or all of the cost can be included as a deductible medical expense.

Accepted Answer

A) True 
 B)False

Roberto, age 50, has AGI of $110,000 for 2019. He has medical expenses of $13,200. How much of the medical expenses can Roberto deduct on his Schedule A for 2019?

In 2019, the itemized deduction for taxes is limited to 10% of adjusted gross income.

In 2019, state income taxes or state and local sales taxes, whichever is larger, may be deducted as an itemized deduction on Schedule A.

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

If a Section 401(k) plan allows an employee to choose between a direct payment of compensation in cash or a contribution to the retirement plan, the plan is not a "qualified" plan.

Since a contribution to an IRA is a voluntary action, a taxpayer may withdraw amounts from an IRA at any time without penalty.

To deduct interest paid with respect to indebtedness, the taxpayer must be legally liable for the debt.

In 2019, all taxpayers may make a deductible or nondeductible contribution to an IRA.

Shellie, a single individual, received her Bachelor's degree in 2018, and took a job with a salary of $45,000 per year. In 2019, she paid $1,500 of interest on qualified education loans. Which of the following statements is correct?

Fran paid the following amounts of interest during 2019: Qualified home mortgage interest \ 7,000 Automobile loan interest \ 500 Qualified interest on second residence \ 5,000 Credit card interest \ 300 Calculate the amount of Fran's interest deduction for 2019.

If a taxpayer receives an early distribution from an IRA due to disability, he or she will not be subject to a penalty.

In some cases, a taxpayer may deduct an otherwise allowable contribution to an IRA, even though the contribution is made after the close of the tax year.

Ben is a 19-year-old single software inventor earning $200,000 a year and is not covered by a pension plan at work. How much can he put into a Roth IRA in 2019?

Which of the following taxpayers qualifies for the maximum traditional individual retirement account deduction for 2019?

If a taxpayer installs special equipment in their home for medical reasons, some or all of the cost can be included as a deductible medical expense.

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses

Additional Income and the Qualified Business Income Deduction

Accounting Periods and Other Taxes

Tax Credits

Depreciation and Sale of Business Property

Payroll, Estimated Payments and Retirement Plans

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Exam 5: Deductions for and From AGI

Roberto, age 50, has AGI of $110,000 for 2019. He has medical expenses of $13,200. How much of the medical expenses can Roberto deduct on his Schedule A for 2019?

In 2019, the itemized deduction for taxes is limited to 10% of adjusted gross income.

In 2019, state income taxes or state and local sales taxes, whichever is larger, may be deducted as an itemized deduction on Schedule A.

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

If a Section 401(k) plan allows an employee to choose between a direct payment of compensation in cash or a contribution to the retirement plan, the plan is not a "qualified" plan.

Since a contribution to an IRA is a voluntary action, a taxpayer may withdraw amounts from an IRA at any time without penalty.

To deduct interest paid with respect to indebtedness, the taxpayer must be legally liable for the debt.

In 2019, all taxpayers may make a deductible or nondeductible contribution to an IRA.

Shellie, a single individual, received her Bachelor's degree in 2018, and took a job with a salary of $45,000 per year. In 2019, she paid $1,500 of interest on qualified education loans. Which of the following statements is correct?

Fran paid the following amounts of interest during 2019: Qualified home mortgage interest \ 7,000 Automobile loan interest \ 500 Qualified interest on second residence \ 5,000 Credit card interest \ 300 Calculate the amount of Fran's interest deduction for 2019.

If a taxpayer receives an early distribution from an IRA due to disability, he or she will not be subject to a penalty.

In some cases, a taxpayer may deduct an otherwise allowable contribution to an IRA, even though the contribution is made after the close of the tax year.

Ben is a 19-year-old single software inventor earning $200,000 a year and is not covered by a pension plan at work. How much can he put into a Roth IRA in 2019?

Which of the following taxpayers qualifies for the maximum traditional individual retirement account deduction for 2019?

If a taxpayer installs special equipment in their home for medical reasons, some or all of the cost can be included as a deductible medical expense.

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses

Additional Income and the Qualified Business Income Deduction

Accounting Periods and Other Taxes

Tax Credits

Depreciation and Sale of Business Property

Payroll, Estimated Payments and Retirement Plans

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters