Exam 5: Itemized Deductions

For the current year,Gina Hestopolis had adjusted gross income of $100,000.During the year,she contributed $6,000 to her church and an additional $3,000 to qualified charities.She also contributed religious artwork with a fair market value of $60,000 and a basis of $20,000 to her church.The church intends to display the religious artwork in the church foyer.If Gina chooses to itemize her deductions,what is the amount of her deductible charitable contribution in the current year?

If donated appreciated capital gain property is put to a use that is unrelated to the purpose or function of a charity's tax-exempt status,the contribution must be reduced by the amount of any long-term capital gain that would have been realized if the property had been sold at its fair market value at the time of the contribution.

Individual taxpayers may carry forward for five years charitable contributions that are not allowed as a deduction in the current year due to the adjusted gross income limitation.

In 2017,the Jurics' pleasure boat was severely damaged by a hurricane in an area that was declared a federal disaster area.They had AGI of $110,000 in 2017.The following information relates to the craft: Cost Basis \ 5,000 FMV before casualty 145,000 FMV after casualty 25,000 The Jurics had insurance and received an $80,000 insurance settlement. What is the allowable casualty loss deduction for the Jurics in 2017?

The cost of aspirin and over-the-counter cough medicine is a deductible medical expense even though they are nonprescription drugs.

When are travel costs deductible as medical costs? How are medical travel costs calculated?

Which of the following expenses is deductible,but subject to the 2% limitation on Form 1040,Schedule A,Job Expenses and Most Other Miscellaneous Itemized Deductions?

Moesha paid $60 for Girl Scout cookies and $50 for Cub Scout cracker jacks.Moesha may claim the full $110 as a charitable contribution deduction.

During 2017,Remy paid the following expenses: Prescription medicines \6 40 Aspirin, vitamins, and cold medicine 165 Hospital and treatment fees 1,050 Health insurance premiums 250 What is the total amount of medical expenses (before considering the limitation based on adjusted gross income)that would enter into the calculation of itemized deductions on Remy's 2017 income tax return?

Sales taxes are deductible as an itemized deduction based only on the actual amount of sales taxes paid.

Premiums paid for long-term care insurance are not deductible as medical expenses.

Which of the following costs are potentially deductible on Form 1040,Schedule A as taxes for 2017? 1.Property tax on principal residence. 2)Garbage pickup itemized on the real estate bill. 3)Real estate tax on property owned as an investment. 4)Sales tax paid on the purchase of a personal car.

For investment interest expense in 2017,the deduction by a taxpayer is:

Isaiah an NBA point guard,is advised by his physician to install a Jacuzzi in his residence since he is afflicted with a back problem incurred after years of running up and down the court.The cost of installing the Jacuzzi is $6,500.He installs the Jacuzzi in January of 2017,and it increases the value of his residence by $3,500.Disregarding the limitation based on adjusted gross income,how much of the cost of the Jacuzzi may Isaiah take into account in determining his medical expense deduction for 2017?

If one or more non-cash gifts has a fair market value over $500,the taxpayer must:

Akule paid the following amounts of interest in 2017: $150 on his personal credit card $9,500 on his home mortgage $750 on a personal car loan,which was not used for business $350 on funds borrowed to purchase tax-exempt securities What is his deductible interest for 2017?

Taxes assessed for local benefits,such as repair of an existing sidewalk,are deductible as real property taxes.

Mr.Mugabi must use a wheelchair.Upon advice from his physician,he installed an elevator and widened the front entrance of his house in 2017,incurring $15,000 and $4,000 in costs,respectively.Mr.Mugabi originally purchased his house for $202,000.An appraisal showed the fair market value of Mrs.Hampton' house immediately after these modifications at $212,000.Compute his currently deductible medical expense in regards to these improvements before AGI limitations.

Loan fees that are not "points",or prepaid interest,are deductible as interest on Schedule A.

Which of the following miscellaneous itemized deductions is not subject to the 2% of AGI threshold?