Question 1

Taxes deductible as an itemized deduction include all of the following except:

Accepted Answer

A) Personal property taxes based on the value of the property. 
B) Taxes that the taxpayer paid on property owned by his/her parents or children. 
C) State and local income taxes. 
D) Real estate property taxes based on the assessed value of the property. 
A) Personal property taxes based on the value of the property. 
B) Taxes that the taxpayer paid on property owned by his/her parents or children. 
C) State and local income taxes. 
D) Real estate property taxes based on the assessed value of the property.

Question 2

For determination of deductibility,all personal casualty losses incurred during the year are added together and only one $100 floor amount is used to reduce the casualty deduction.

Accepted Answer

A) True 
 B)False

Question 3

What is home equity indebtedness and how does it differ from acquisition indebtedness? Are there any limits to the deductibility of home equity loan interest?

Accepted Answer

Home equity indebtedness is a loan that

Question 4

During 2017,Manuel and Gloria,who are not married and live in Beverly Hills,incurred acquisition debt on their new residence of $2,150,000.On their individual tax returns,what is the amount of qualified acquisition debt on which they can each deduct interest?

Accepted Answer

A) $900,000. 
B) $1,000,000. 
C) $1,050,000. 
D) $1,150,000. 
A) $900,000. 
B) $1,000,000. 
C) $1,050,000. 
D) $1,150,000.

Question 5

In 2016,Roxanne's nephew was her dependent.For 2017,he no longer qualifies as her dependent.However,she paid $650 in 2017 for medical expenses she incurred in 2016 when he was her dependent.Roxanne can include the $650 in figuring her medical expense deduction in 2017.

Accepted Answer

A) True 
 B)False

Question 6

Ming earned net investment income of $11,000 during 2017 and incurred investment interest expense of $3,000 during the year related to a stock purchase.She incurred other investment interest expenses of $7,000 during the year.Ming is limited to a deduction of $3,000 of investment interest expense in 2017.

Accepted Answer

A) True 
 B)False

Question 7

Shanika lives in Oregon which imposes a state tax on income.For 2017,Shanika had the following transactions related to her state income taxes: $\begin{array}{lr}
\text {State taxes withheld in 2017 }&\$3,500\
\text {State refund received in 2017 of 2016 tax }&600\\text {Additional assessment paid in 2017 of 2015 tax }&750\
\end{array}$
 Shanika plans to itemize on her 2017 return.What amount of state and local taxes should Shanika deduct in calculating itemized deductions for her 2017 federal income tax return?

Accepted Answer

A) $750. 
B) $3,500. 
C) $4,250. 
D) $4,850. 
A) $750. 
B) $3,500. 
C) $4,250. 
D) $4,850.

Question 8

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.What is the amount of the charitable contribution carry forward beyond the current year for Gina Hestopolis?

Accepted Answer

A) $30,000. 
B) $20,000. 
C) $10,000. 
D) $0. 
A) $30,000. 
B) $20,000. 
C) $10,000. 
D) $0.

Question 9

To qualify for a medical expense deduction as a taxpayer's dependent,a person must be a dependent either at the time the medical services were provided or at the time the expenses were paid.A person generally qualifies as a dependent for purposes of the medical expense deduction if the person:

Accepted Answer

A) Would qualify as a dependent except for the amount of gross income. 
B) Was a foreign student staying briefly at taxpayer's home. 
C) Is an unmarried adult child of taxpayer's sibling. 
D) Is the unrelated caregiver for taxpayer's elderly parents. 
A) Would qualify as a dependent except for the amount of gross income. 
B) Was a foreign student staying briefly at taxpayer's home. 
C) Is an unmarried adult child of taxpayer's sibling. 
D) Is the unrelated caregiver for taxpayer's elderly parents.

Question 10

For 2017,describe the treatment that taxpayers can elect to take for the amount of either (1)state and local income taxes or (2)state and local general sales taxes paid during the tax year.

Accepted Answer

For 2017,taxpayers can elect to take an

Question 11

What is usually the largest miscellaneous itemized deduction category? Does it require any special treatment?

Accepted Answer

Unreimbursed employee business expenses

Question 12

Which of the following organizations do not qualify for deductible charitable contributions?

Accepted Answer

A) The Salvation Army. 
B) A political party. 
C) Religious organizations. 
D) All of these. 
A) The Salvation Army. 
B) A political party. 
C) Religious organizations. 
D) All of these.

Question 13

The interest paid on a loan used to acquire municipal bonds is deductible as investment interest expense.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following expenses is not deductible as medical expense?

Accepted Answer

A) Insulin used for diabetes. 
B) Wig purchased upon the advice of a physician for the mental health of a patient who has lost all of his/her hair from disease. 
C) Joining a tennis club to become more active upon recommendation of a doctor. 
D) Acupuncture used to treat migraines. 
A) Insulin used for diabetes. 
B) Wig purchased upon the advice of a physician for the mental health of a patient who has lost all of his/her hair from disease. 
C) Joining a tennis club to become more active upon recommendation of a doctor. 
D) Acupuncture used to treat migraines.

Question 15

In 2017,the U.S.President declared a federal disaster due to the flooding in Louisiana.Danielle lives in that area and lost her home in the flood.What choice does she have regarding when she can claim the loss on her tax return?

Accepted Answer

A) It must be claimed in 2016 if the return has not been filed by the date of the loss. 
B) It must be claimed in 2017 if the loss is greater than the modified adjusted gross income. 
C) It may be claimed in 2018 if an election is filed with the 2017 return. 
D) It may be claimed in 2016 or 2017. 
A) It must be claimed in 2016 if the return has not been filed by the date of the loss. 
B) It must be claimed in 2017 if the loss is greater than the modified adjusted gross income. 
C) It may be claimed in 2018 if an election is filed with the 2017 return. 
D) It may be claimed in 2016 or 2017.

Question 16

How does the declaration of a federally declared disaster area benefit the taxpayer concerning a casualty loss?

Accepted Answer

A taxpayer can elect to amend

Question 17

Taxpayers must itemize their deductions to be allowed a charitable contribution deduction.

Accepted Answer

A) True 
 B)False

Question 18

What are four major categories of deductible taxes for individual returns?

Accepted Answer

1.Personal property taxes
2.Lo

Question 19

Raheem and Niseema (husband and wife)contributed $15,000 in cash to their mosque during 2017.They also donated $3,000 to a private foundation which is a nonprofit cemetery organization.They knew a 30% limit applies to contributions to such foundations.Their adjusted gross income for the year 2017 was $30,000.Raheem and Niseema's deductible contribution for the year 2017 and any carryover to next year is:

Accepted Answer

A) $18,000 with $0 carryover to next year. 
B) $15,000 with $2,100 carryover to next year. 
C) $7,500 with $2,100 carryover to next year. 
D) $15,000 with $3,000 carryover to next year. 
A) $18,000 with $0 carryover to next year. 
B) $15,000 with $2,100 carryover to next year. 
C) $7,500 with $2,100 carryover to next year. 
D) $15,000 with $3,000 carryover to next year.

Question 20

During 2017,Belen paid the following taxes: $\begin{array}{ll}
\text {Property taxes on residence (paid from escrow account) }&\$1,550 \
\text { Property tax portion of car registration (based on value)}&400 \
\text {Property taxes on land held for long-term appreciation }&350 \
\end{array}$
 What amount can Belen deduct as property taxes in calculating her itemized deductions for 2017?

Accepted Answer

A) $750. 
B) $350. 
C) $1,950. 
D) $2,300. 
A) $750. 
B) $350. 
C) $1,950. 
D) $2,300.

Taxes deductible as an itemized deduction include all of the following except:

For determination of deductibility,all personal casualty losses incurred during the year are added together and only one $100 floor amount is used to reduce the casualty deduction.

What is home equity indebtedness and how does it differ from acquisition indebtedness? Are there any limits to the deductibility of home equity loan interest?

During 2017,Manuel and Gloria,who are not married and live in Beverly Hills,incurred acquisition debt on their new residence of $2,150,000.On their individual tax returns,what is the amount of qualified acquisition debt on which they can each deduct interest?

In 2016,Roxanne's nephew was her dependent.For 2017,he no longer qualifies as her dependent.However,she paid $650 in 2017 for medical expenses she incurred in 2016 when he was her dependent.Roxanne can include the $650 in figuring her medical expense deduction in 2017.

To qualify for a medical expense deduction as a taxpayer's dependent,a person must be a dependent either at the time the medical services were provided or at the time the expenses were paid.A person generally qualifies as a dependent for purposes of the medical expense deduction if the person:

For 2017,describe the treatment that taxpayers can elect to take for the amount of either (1)state and local income taxes or (2)state and local general sales taxes paid during the tax year.

What is usually the largest miscellaneous itemized deduction category? Does it require any special treatment?

Which of the following organizations do not qualify for deductible charitable contributions?

The interest paid on a loan used to acquire municipal bonds is deductible as investment interest expense.

Which of the following expenses is not deductible as medical expense?

In 2017,the U.S.President declared a federal disaster due to the flooding in Louisiana.Danielle lives in that area and lost her home in the flood.What choice does she have regarding when she can claim the loss on her tax return?

How does the declaration of a federally declared disaster area benefit the taxpayer concerning a casualty loss?

Taxpayers must itemize their deductions to be allowed a charitable contribution deduction.

What are four major categories of deductible taxes for individual returns?

Introduction to Taxation, the Income Tax Formula, and Form 1040EZ

Expanded Tax Formula, forms 1040A and 1040, and Basic Concepts

Gross Income: Inclusions and Exclusions

Adjustments for Adjusted Gross Income

Self-Employed Business Income Line 12 of Form 1040 and Schedule C

Capital Gains and Other Sales of Property Schedule D and Form 4797

Rental Property, Royalties, and Income From Flow- Through Entities Line 17, form 1040, and Schedule E

Tax Credits Form 1040,lines 48 Through 54 and Lines 66A Through 73

Payroll Taxes

Retirement and Other Tax-Deferred Plans and Annuities

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Partnership Taxation

Corporate Taxation

Filters

Exam 5: Itemized Deductions

Taxes deductible as an itemized deduction include all of the following except:

For determination of deductibility,all personal casualty losses incurred during the year are added together and only one $100 floor amount is used to reduce the casualty deduction.

What is home equity indebtedness and how does it differ from acquisition indebtedness? Are there any limits to the deductibility of home equity loan interest?

During 2017,Manuel and Gloria,who are not married and live in Beverly Hills,incurred acquisition debt on their new residence of $2,150,000.On their individual tax returns,what is the amount of qualified acquisition debt on which they can each deduct interest?

In 2016,Roxanne's nephew was her dependent.For 2017,he no longer qualifies as her dependent.However,she paid $650 in 2017 for medical expenses she incurred in 2016 when he was her dependent.Roxanne can include the $650 in figuring her medical expense deduction in 2017.

To qualify for a medical expense deduction as a taxpayer's dependent,a person must be a dependent either at the time the medical services were provided or at the time the expenses were paid.A person generally qualifies as a dependent for purposes of the medical expense deduction if the person:

For 2017,describe the treatment that taxpayers can elect to take for the amount of either (1)state and local income taxes or (2)state and local general sales taxes paid during the tax year.

What is usually the largest miscellaneous itemized deduction category? Does it require any special treatment?

Which of the following organizations do not qualify for deductible charitable contributions?

The interest paid on a loan used to acquire municipal bonds is deductible as investment interest expense.

Which of the following expenses is not deductible as medical expense?

In 2017,the U.S.President declared a federal disaster due to the flooding in Louisiana.Danielle lives in that area and lost her home in the flood.What choice does she have regarding when she can claim the loss on her tax return?

How does the declaration of a federally declared disaster area benefit the taxpayer concerning a casualty loss?

Taxpayers must itemize their deductions to be allowed a charitable contribution deduction.

What are four major categories of deductible taxes for individual returns?

Introduction to Taxation, the Income Tax Formula, and Form 1040EZ

Expanded Tax Formula, forms 1040A and 1040, and Basic Concepts

Gross Income: Inclusions and Exclusions

Adjustments for Adjusted Gross Income

Self-Employed Business Income Line 12 of Form 1040 and Schedule C

Capital Gains and Other Sales of Property Schedule D and Form 4797

Rental Property, Royalties, and Income From Flow- Through Entities Line 17, form 1040, and Schedule E

Tax Credits Form 1040,lines 48 Through 54 and Lines 66A Through 73

Payroll Taxes

Retirement and Other Tax-Deferred Plans and Annuities

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Partnership Taxation

Corporate Taxation

Filters