Exam 5: Itemized Deductions

Which of the following costs are deductible on Form 1040,Schedule A,as taxes? 1.Real estate taxes on property owned in Mexico. 2)Property tax portion of vehicle registration,based on the value of the auto. 3)Fine for speeding. 4)Personal property tax on a pleasure boat.

What are the general limits or floors placed on deductible personal casualty losses?

Taxes assessed for local benefits,such as a new sidewalk,are deductible as real property taxes.

In 2017,Sheena was required by her employer to use her car for work.Her employer's mileage reimbursement was $0.25 per mile.If Sheena's actual expenses are more than the reimbursement,she can deduct the excess amount on Schedule C.

In 2017,the U.S.President declared a federal disaster in Arizona due to wild fires.Hamed lives in the affected area and lost his home in the fires.What choice does he have regarding when he can claim the loss on his tax return?

Theft losses are deducted in the tax year in which the theft was discovered,rather than the year of theft,if the discovery comes later.

Prescription drugs obtained outside the United States,such as from Canada,are never deductible on a U.S.tax return.

Tyrell,who is 65,had adjusted gross income of $35,000 in 2017.During the year,he incurred and paid the following medical expenses: Drugs and medicines prescribed by doctors: \1 ,570 Health insurance premiums: 825 Doctor and dentist fees: 1,850 Hearing aid: 275 Tyrell received $600 in 2017 as a reimbursement for a portion of the doctors' fees.If he were to itemize his deductions,what would be his allowable medical expense deduction after the adjusted gross income limitation is taken into account?

Which of the following types of taxes are deductible on Schedule A in 2017?

Sales taxes paid may be deducted as an itemized deduction on Schedule A.

The Kaplans,who live in Boise,Idaho,had adjusted gross income of $140,000 in 2017.During the year,their principal residence was severely damaged by a house fire.The pertinent financial information is as follows: Cost basis = \ 134,000 Value before casualty = \ 156,000 Value after casualty = \ 20,000 The Kaplans had some insurance and in 2017 reached a settlement with the insurance company for $110,000 insurance settlement.What is their allowable casualty loss deduction for 2017?

Which of the following interest expenses incurred by Trent is treated as personal interest expense and,therefore,not deductible as an itemized deduction?

Donations to what types of organizations are tax deductible?

For 2017,Lydia had adjusted gross income of $60,000 and made the following charitable contributions: Cash contribution to her synagogue: \1 ,500 Tuition to a private school paid directly to her niece: \1 ,200 Contribution to the Salvation Army: \3 50 Cash contribution to a man begging on a freeway off ramp: \1 50 What is the maximum amount that she can deduct as a charitable contribution for 2017?

If an accountant in public accounting seeks work as a controller in private industry,the expenses of job hunting may be deductible.

Premiums paid for long-term care insurance policies may be deductible as medical expenses.

What is the proper treatment for prescription drugs obtained from sources outside the United States,such as Canada,that have been prescribed by a physician for the treatment of a medical condition and the FDA has approved that they can be legally imported?

In the past,high-income taxpayers' itemized deductions have been reduced,called the Pease limitations,by the lower of 3% of the excess of AGI over the applicable amount or 80% of the itemized deductions otherwise allowable for the tax year.For 2017,this limitation on the amount of itemized deductions for high-income taxpayers is still in effect.

Which of the following statements is true regarding documentation requirements for charitable contributions?

Robert and Becky (husband and wife)are both lawyers and they contribute money to various organizations each year.They file a joint return and their adjusted gross income for 2017 is $100,000.They contributed to the following organizations in 2017: -$5,000 to Shangri La country club -$10,000 to the ASPCA -$2,000 to State Bar Association Political Action Committee -$12,000 to a juvenile diabetes research foundation -Donated clothing to Goodwill.(Robert originally purchased the items for $400,but the fair market value of the same items at a thrift store is equal to $50. ) How much can Robert and Becky deduct as charitable contributions for the year 2017?