Question 1

Taxpayers can deduct qualified residence interest on their principal residence and on a second residence selected by the taxpayer.

Accepted Answer

A) True 
 B)False

Question 2

Ignacio and Perla are married and both are government employees.They contribute money to various organizations each year and file a joint return.Their adjusted gross income for 2017 is $100,000.They contributed to the following organizations in 2017: -$3,500 to the World Wildlife Foundation
-$10,000 to the Salvation Army
-$2,000 to a local city council candidate
-$11,000 to a breast cancer research hospital
-Donated clothing to Goodwill.(Ignacio purchased the items for $375,but the thrift shop value of the same items at a local second-hand store is equal to $60. )
How much can Ignacio and Perla deduct as charitable contributions for the year 2017?

Accepted Answer

A) $26,560. 
B) $26,500. 
C) $25,710. 
D) $24,560. 
A) $26,560. 
B) $26,500. 
C) $25,710. 
D) $24,560.

Question 3

The threshold amount for the deductibility of allowable medical expenses in 2017 is:

Accepted Answer

A) 10% of AGI. 
B) 10% of taxable income. 
C) 7)5% of AGI. 
D) 7)5% of taxable income. 
A) 10% of AGI. 
B) 10% of taxable income. 
C) 7)5% of AGI. 
D) 7)5% of taxable income.

Question 4

Which of the following may not be deducted either totally or partially as medical expenses? (Disregard any limitations which may apply. )

Accepted Answer

A) $3,000 to a family physician for medical care. 
B) $1,000 long-term care insurance. 
C) $600 for eyeglasses. 
D) $300 for maternity clothes. 
A) $3,000 to a family physician for medical care. 
B) $1,000 long-term care insurance. 
C) $600 for eyeglasses. 
D) $300 for maternity clothes.

Question 5

On December 31,2017,Roger charged a $1,800 contribution to a qualified charitable organization to his credit card.He will not pay the credit card bill until January 2018.The $1,800 contribution is deductible on Roger's 2017 tax return.

Accepted Answer

A) True 
 B)False

Question 6

Flo and Artis (wife and husband)are itemizing their Schedule A expenses on their tax year 2016 return.Artis traveled to Japan for his employer,but was not reimbursed.His meal expenses totaled $500.How much can Artis deduct for meals before applying the 2% of AGI limitation?

Accepted Answer

A) $500. 
B) $250. 
C) $150. 
D) $0. 
A) $500. 
B) $250. 
C) $150. 
D) $0.

Question 7

For purposes of computing the deduction for qualified residence interest,a qualified residence includes the taxpayer's principal residence and one other residence of the taxpayer or spouse.

Accepted Answer

A) True 
 B)False

Question 8

Personal property taxes paid on personal-use assets,such as the family car,are deductible on Schedule A.

Accepted Answer

A) True 
 B)False

Question 9

On April 3rd,Gila discovers that her diamond broach has been stolen.The broach had a fair market value and adjusted basis of $15,000.The broach was not covered by Gila's insurance policy and her adjusted gross income for the year was $65,000.What would be her casualty loss deduction for the year?

Accepted Answer

Question 10

Malika and Henry's vacation home was completely destroyed by fire.They had no insurance to cover the loss.On which of the following forms would they report their loss?

Accepted Answer

A) Form 4684,Casualties and Thefts,and Form 1040,U.S.Individual Income Tax Return,as an adjustment to gross income. 
B) Schedule A,Itemized Deductions,only. 
C) Form 4684,Casualties and Thefts,and Schedule A,Itemized Deductions. 
D) Form 4684,Casualties and Thefts,only. 
A) Form 4684,Casualties and Thefts,and Form 1040,U.S.Individual Income Tax Return,as an adjustment to gross income. 
B) Schedule A,Itemized Deductions,only. 
C) Form 4684,Casualties and Thefts,and Schedule A,Itemized Deductions. 
D) Form 4684,Casualties and Thefts,only.

Question 11

Shinobu resides in a state that imposes a tax on income.The following information relates to Shinobu's state income tax situation for 2017: $\begin{array}{lr}
\text {Taxes withheld in 2017 }&\$4,300\
\text { State refund received in 2017 of 2016 tax}&700\
\text { Additional assessment paid in 2017 of 2015 tax}&950\
\end{array}$
 Assuming she elects to deduct state and local income taxes,what amount should Shinobu use to calculate itemized deductions for her 2017 federal income tax return?

Accepted Answer

A) $0. 
B) $3,600. 
C) $5,250. 
D) $5,950. 
A) $0. 
B) $3,600. 
C) $5,250. 
D) $5,950.

Question 12

Describe the concept of a 7.5% floor for medical deductions.

Accepted Answer

The 7.5% floor means that medical expens

Question 13

Sid makes weekly cash contributions of $30 to his church.He pays by check.Since his annual contributions to the church are more than $250,he must obtain a written acknowledgment from the church to support his contribution deduction.

Accepted Answer

A) True 
 B)False

Question 14

What is qualified residence interest? Are there any limits to the deductibility of qualified residence interest?

Accepted Answer

Qualified residence interest is any inte

Question 15

What is the maximum amount of personal residence acquisition debt on which interest is fully deductible?

Accepted Answer

A) $1,000,000. 
B) $500,000. 
C) $250,000. 
D) $0. 
A) $1,000,000. 
B) $500,000. 
C) $250,000. 
D) $0.

Question 16

During 2017 Yoko paid the following expenses: $\begin{array}{ll}
\text { Prescription medicines}& \$525\
\text { Doctors and dentists}&1,050 \
\text {Vitamins and ibuprofen }&575 \
\text {Health club membership fee }&450 \
\end{array}$
 What is the total amount of medical expenses (before application of the adjusted gross income limitation)that would enter into the calculation of itemized deductions on Yoko's 2017 income tax return?

Accepted Answer

A) $525. 
B) $1,325. 
C) $1,500. 
D) $1,575. 
A) $525. 
B) $1,325. 
C) $1,500. 
D) $1,575.

Question 17

Generally,the taxpayer may deduct the cost of medical expenses on Schedule A for which of the following?

Accepted Answer

A) Doctor prescribed birth control pills. 
B) Controlled substances like marijuana that are in violation of federal law. 
C) Trips for general health improvement. 
D) Marriage counseling. 
A) Doctor prescribed birth control pills. 
B) Controlled substances like marijuana that are in violation of federal law. 
C) Trips for general health improvement. 
D) Marriage counseling.

Question 18

Which of the following miscellaneous deductions are subject to the 2% of adjusted gross income limitation?

Accepted Answer

A) Unreimbursed employee business expenses. 
B) Investment counsel and advisory fees. 
C) Safe deposit box fees. 
D) All of these. 
A) Unreimbursed employee business expenses. 
B) Investment counsel and advisory fees. 
C) Safe deposit box fees. 
D) All of these.

Question 19

Which of the following miscellaneous itemized deductions is not subject to the 2% of adjusted gross income limitation?

Accepted Answer

A) Unreimbursed employee business expenses. 
B) Gambling losses up to the amount of gambling winnings. 
C) Union or professional dues and subscriptions. 
D) Tax return preparation fees. 
A) Unreimbursed employee business expenses. 
B) Gambling losses up to the amount of gambling winnings. 
C) Union or professional dues and subscriptions. 
D) Tax return preparation fees.

Question 20

In order for a personal property tax to be deductible as an itemized deduction,what three tests are required?

Accepted Answer

State or local property taxes must meet

Taxpayers can deduct qualified residence interest on their principal residence and on a second residence selected by the taxpayer.

The threshold amount for the deductibility of allowable medical expenses in 2017 is:

Which of the following may not be deducted either totally or partially as medical expenses? (Disregard any limitations which may apply. )

On December 31,2017,Roger charged a $1,800 contribution to a qualified charitable organization to his credit card.He will not pay the credit card bill until January 2018.The $1,800 contribution is deductible on Roger's 2017 tax return.

Flo and Artis (wife and husband)are itemizing their Schedule A expenses on their tax year 2016 return.Artis traveled to Japan for his employer,but was not reimbursed.His meal expenses totaled $500.How much can Artis deduct for meals before applying the 2% of AGI limitation?

For purposes of computing the deduction for qualified residence interest,a qualified residence includes the taxpayer's principal residence and one other residence of the taxpayer or spouse.

Personal property taxes paid on personal-use assets,such as the family car,are deductible on Schedule A.

On April 3^rd,Gila discovers that her diamond broach has been stolen.The broach had a fair market value and adjusted basis of $15,000.The broach was not covered by Gila's insurance policy and her adjusted gross income for the year was $65,000.What would be her casualty loss deduction for the year?

Malika and Henry's vacation home was completely destroyed by fire.They had no insurance to cover the loss.On which of the following forms would they report their loss?

Describe the concept of a 7.5% floor for medical deductions.

Sid makes weekly cash contributions of $30 to his church.He pays by check.Since his annual contributions to the church are more than $250,he must obtain a written acknowledgment from the church to support his contribution deduction.

What is qualified residence interest? Are there any limits to the deductibility of qualified residence interest?

What is the maximum amount of personal residence acquisition debt on which interest is fully deductible?

Generally,the taxpayer may deduct the cost of medical expenses on Schedule A for which of the following?

Which of the following miscellaneous deductions are subject to the 2% of adjusted gross income limitation?

Which of the following miscellaneous itemized deductions is not subject to the 2% of adjusted gross income limitation?

In order for a personal property tax to be deductible as an itemized deduction,what three tests are required?

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

Taxpayers can deduct qualified residence interest on their principal residence and on a second residence selected by the taxpayer.

The threshold amount for the deductibility of allowable medical expenses in 2017 is:

Which of the following may not be deducted either totally or partially as medical expenses? (Disregard any limitations which may apply. )

On December 31,2017,Roger charged a $1,800 contribution to a qualified charitable organization to his credit card.He will not pay the credit card bill until January 2018.The $1,800 contribution is deductible on Roger's 2017 tax return.

Flo and Artis (wife and husband)are itemizing their Schedule A expenses on their tax year 2016 return.Artis traveled to Japan for his employer,but was not reimbursed.His meal expenses totaled $500.How much can Artis deduct for meals before applying the 2% of AGI limitation?

For purposes of computing the deduction for qualified residence interest,a qualified residence includes the taxpayer's principal residence and one other residence of the taxpayer or spouse.

Personal property taxes paid on personal-use assets,such as the family car,are deductible on Schedule A.

On April 3rd,Gila discovers that her diamond broach has been stolen.The broach had a fair market value and adjusted basis of $15,000.The broach was not covered by Gila's insurance policy and her adjusted gross income for the year was $65,000.What would be her casualty loss deduction for the year?

Malika and Henry's vacation home was completely destroyed by fire.They had no insurance to cover the loss.On which of the following forms would they report their loss?

Describe the concept of a 7.5% floor for medical deductions.

Sid makes weekly cash contributions of $30 to his church.He pays by check.Since his annual contributions to the church are more than $250,he must obtain a written acknowledgment from the church to support his contribution deduction.

What is qualified residence interest? Are there any limits to the deductibility of qualified residence interest?

What is the maximum amount of personal residence acquisition debt on which interest is fully deductible?

Generally,the taxpayer may deduct the cost of medical expenses on Schedule A for which of the following?

Which of the following miscellaneous deductions are subject to the 2% of adjusted gross income limitation?

Which of the following miscellaneous itemized deductions is not subject to the 2% of adjusted gross income limitation?

In order for a personal property tax to be deductible as an itemized deduction,what three tests are required?

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

On April 3^rd,Gila discovers that her diamond broach has been stolen.The broach had a fair market value and adjusted basis of $15,000.The broach was not covered by Gila's insurance policy and her adjusted gross income for the year was $65,000.What would be her casualty loss deduction for the year?