Question 1

For 2017,high-income taxpayers do not have to forfeit part of their itemized deductions.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following organizations generally qualify for deductible charitable contributions?

Accepted Answer

A) Churches. 
B) Political parties. 
C) A political action committee. 
D) None of these. 
A) Churches. 
B) Political parties. 
C) A political action committee. 
D) None of these.

Question 3

Explain the tax treatment regarding the limitation of itemized deductions for high-income taxpayers.

Accepted Answer

For 2017,there is a limitation in effect

Question 4

The cost of a chiropractor's services does not qualify as a medical deduction.

Accepted Answer

A) True 
 B)False

Question 5

For 2017,the investment interest expense deduction is limited to the taxpayer's gross investment income.

Accepted Answer

A) True 
 B)False

Question 6

If the donation is greater than $250,what kind of written acknowledgment must the taxpayer obtain from the recipient organization?

Accepted Answer

The taxpayer must have written acknowled

Question 7

Which of the deductions listed below is subject to the phase-out of the total dollar amount of certain itemized deductions that may be claimed by high-income individuals?

Accepted Answer

A) Charitable contributions. 
B) Investment interest expense. 
C) Medical costs. 
D) Personal casualty losses. 
A) Charitable contributions. 
B) Investment interest expense. 
C) Medical costs. 
D) Personal casualty losses.

Question 8

What is the maximum amount of home equity indebtedness on which interest is fully deductible?

Accepted Answer

A) $0. 
B) $50,000. 
C) $100,000. 
D) $200,000. 
A) $0. 
B) $50,000. 
C) $100,000. 
D) $200,000.

Question 9

Which of the following items would be an itemized deduction on Schedule A of Form 1040 subject to the 2% of AGI floor?

Accepted Answer

A) Professional dues to membership organizations. 
B) Work uniforms that cannot be used for normal wear. 
C) Job-hunting costs. 
D) All of these. 
A) Professional dues to membership organizations. 
B) Work uniforms that cannot be used for normal wear. 
C) Job-hunting costs. 
D) All of these.

Question 10

Personal casualty losses resulting from termite damage are deductible.

Accepted Answer

A) True 
 B)False

Question 11

Some charitable contributions are limited to 50% of the taxpayer's AGI,others may be limited to a lower % of AGI.Deductions to which of the following organizations are subject to the 50% limitation on deductible contributions?

Accepted Answer

A) Churches and conventions of organizations of churches and educational organizations. 
B) Hospitals and certain medical research organizations associated with these hospitals. 
C) Rotary,Elks,and Lions Clubs who raise money for public causes. 
D) Both churches and conventions of organizations of churches and educational organizations and hospitals and certain medical research organizations associated with these hospitals. 
A) Churches and conventions of organizations of churches and educational organizations. 
B) Hospitals and certain medical research organizations associated with these hospitals. 
C) Rotary,Elks,and Lions Clubs who raise money for public causes. 
D) Both churches and conventions of organizations of churches and educational organizations and hospitals and certain medical research organizations associated with these hospitals.

Question 12

For 2017,medical expenses in excess of 7.5 percent of adjusted gross income are deductible.

Accepted Answer

A) True 
 B)False

Question 13

Sonia's car was completely destroyed in an accident that was her fault.Her loss was $8,500 and her insurance company reimbursed her $6,500.What amount of casualty loss can Sonia claim on her return (before deduction limitations)?

Accepted Answer

A) $0 
B) $2,000 
C) $6,500 
D) $8,500 
A) $0 
B) $2,000 
C) $6,500 
D) $8,500

Question 14

For 2017,Miram,a single mother,reported the following amounts relating to her investments: $\begin{array}{lr}
\text {Net investment income from interest }&\$7,000\
\text { Interest expense on a loan to purchase stocks}&2,000\\text {Interest expense on funds borrowed in 2016 to purchase land for investment \ }&6,000\
\end{array}$
 What is the maximum amount that Miriam can deduct in 2017 as investment interest expense?

Accepted Answer

A) $8,000. 
B) $2,000. 
C) $6,000. 
D) $7,000. 
A) $8,000. 
B) $2,000. 
C) $6,000. 
D) $7,000.

Question 15

Which of the following is deductible as a miscellaneous itemized deduction?

Accepted Answer

A) Job-hunting expenses. 
B) Union dues. 
C) Professional dues and subscriptions. 
D) All of these are considered miscellaneous deductions. 
A) Job-hunting expenses. 
B) Union dues. 
C) Professional dues and subscriptions. 
D) All of these are considered miscellaneous deductions.

Question 16

In 2017,federal income taxes may not be deducted as an itemized deduction on Schedule A.

Accepted Answer

A) True 
 B)False

Question 17

Itemized deductions are first reported on:

Accepted Answer

A) Form 1040. 
B) Schedule B. 
C) Form 2106. 
D) Schedule A. 
A) Form 1040. 
B) Schedule B. 
C) Form 2106. 
D) Schedule A.

Question 18

Rick and Claudia live in an apartment and have purchased land where they plan to build their home.They have a mortgage on the lot and have received a Form 1098 from the lender showing the interest paid on the note.Interest paid on this loan is deductible as home mortgage interest on their Schedule A.

Accepted Answer

A) True 
 B)False

Question 19

A taxpayer generally has the option of deducting foreign taxes paid on Schedule A or taking a foreign tax credit.

Accepted Answer

A) True 
 B)False

Question 20

When performing services for a charitable organization,is any charitable deduction allowed? If so,explain.

Accepted Answer

No deduction is permitted for services r

For 2017,high-income taxpayers do not have to forfeit part of their itemized deductions.

Which of the following organizations generally qualify for deductible charitable contributions?

Explain the tax treatment regarding the limitation of itemized deductions for high-income taxpayers.

The cost of a chiropractor's services does not qualify as a medical deduction.

For 2017,the investment interest expense deduction is limited to the taxpayer's gross investment income.

If the donation is greater than $250,what kind of written acknowledgment must the taxpayer obtain from the recipient organization?

Which of the deductions listed below is subject to the phase-out of the total dollar amount of certain itemized deductions that may be claimed by high-income individuals?

What is the maximum amount of home equity indebtedness on which interest is fully deductible?

Which of the following items would be an itemized deduction on Schedule A of Form 1040 subject to the 2% of AGI floor?

Personal casualty losses resulting from termite damage are deductible.

Some charitable contributions are limited to 50% of the taxpayer's AGI,others may be limited to a lower % of AGI.Deductions to which of the following organizations are subject to the 50% limitation on deductible contributions?

For 2017,medical expenses in excess of 7.5 percent of adjusted gross income are deductible.

Sonia's car was completely destroyed in an accident that was her fault.Her loss was $8,500 and her insurance company reimbursed her $6,500.What amount of casualty loss can Sonia claim on her return (before deduction limitations)?

Which of the following is deductible as a miscellaneous itemized deduction?

In 2017,federal income taxes may not be deducted as an itemized deduction on Schedule A.

Itemized deductions are first reported on:

A taxpayer generally has the option of deducting foreign taxes paid on Schedule A or taking a foreign tax credit.

When performing services for a charitable organization,is any charitable deduction allowed? If so,explain.

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

For 2017,high-income taxpayers do not have to forfeit part of their itemized deductions.

Which of the following organizations generally qualify for deductible charitable contributions?

Explain the tax treatment regarding the limitation of itemized deductions for high-income taxpayers.

The cost of a chiropractor's services does not qualify as a medical deduction.

For 2017,the investment interest expense deduction is limited to the taxpayer's gross investment income.

If the donation is greater than $250,what kind of written acknowledgment must the taxpayer obtain from the recipient organization?

Which of the deductions listed below is subject to the phase-out of the total dollar amount of certain itemized deductions that may be claimed by high-income individuals?

What is the maximum amount of home equity indebtedness on which interest is fully deductible?

Which of the following items would be an itemized deduction on Schedule A of Form 1040 subject to the 2% of AGI floor?

Personal casualty losses resulting from termite damage are deductible.

Some charitable contributions are limited to 50% of the taxpayer's AGI,others may be limited to a lower % of AGI.Deductions to which of the following organizations are subject to the 50% limitation on deductible contributions?

For 2017,medical expenses in excess of 7.5 percent of adjusted gross income are deductible.

Sonia's car was completely destroyed in an accident that was her fault.Her loss was $8,500 and her insurance company reimbursed her $6,500.What amount of casualty loss can Sonia claim on her return (before deduction limitations)?

Which of the following is deductible as a miscellaneous itemized deduction?

In 2017,federal income taxes may not be deducted as an itemized deduction on Schedule A.

Itemized deductions are first reported on:

A taxpayer generally has the option of deducting foreign taxes paid on Schedule A or taking a foreign tax credit.

When performing services for a charitable organization,is any charitable deduction allowed? If so,explain.

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