Question 1

The adjusted gross income limitation on casualty losses is 7.5 percent.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) Investment publications expense. 
B) Tax preparation fees. 
C) Gambling losses. 
D) Job-hunting expenses. 
A) Investment publications expense. 
B) Tax preparation fees. 
C) Gambling losses. 
D) Job-hunting expenses.

Question 3

Define a personal casualty loss.

Accepted Answer

A personal casualty loss inclu

Question 4

For 2017,the AGI threshold for the deductibility of personal casualty losses generally is:

Accepted Answer

A) 2%. 
B) 5%. 
C) 7)5%. 
D) 10%. 
A) 2%. 
B) 5%. 
C) 7)5%. 
D) 10%.

Question 5

Tyrone,who is single and under age 65,had the following income in 2017: -$59,800 in wages
-$200 in interest
-$10,000 in gambling winnings
-$5,000 in short-term capital gains.
Tyrone filed a Schedule A,Itemized Deductions,for 2017.While preparing that schedule,Tyrone,who had no above-the-line deductions,listed the following below-the-line deduction items he had incurred during the year:
-$2,500 in medical expenses
-$8,000 of mortgage interest paid
-$2,000 in real estate taxes
-$1,600 in state taxes
-$12,000 in gambling losses
-$3,400 in unreimbursed employee business expenses.
What is the total amount of Schedule A itemized deductions that Tyrone can report in 2017?

Accepted Answer

A) $27,500. 
B) $25,000. 
C) $23,500. 
D) $20,100. 
A) $27,500. 
B) $25,000. 
C) $23,500. 
D) $20,100.

Question 6

A taxpayer receives a deduction for services rendered to a charitable organization.

Accepted Answer

A) True 
 B)False

Question 7

In 2017,Maria who is 66,had adjusted gross income of $27,000,paid the following medical expenses: $\begin{array}{lr}
\text {Prescription medicines }&\$275\
\text {Dentist and doctor expenses }&1,350\
\text { Health insurance premiums}&400\
\text {Two pair of eyeglasses }&185\
\end{array}$
 What amount can Maria deduct as medical expenses (after the adjusted gross income limitation)in calculating her itemized deductions for 2017?

Accepted Answer

A) $2,710. 
B) $2,025. 
C) $185. 
D) $0. 
A) $2,710. 
B) $2,025. 
C) $185. 
D) $0.

Question 8

Explain the key exception to the general rule concerning the charitable deduction for the contribution of tangible personal property.

Accepted Answer

The key exception to the general rule co

Question 9

For the year ended December 31,2017,Terrance,a single professional,reported the following: Net investment income from interest,$14,000
Other expenses unrelated to the generation of interest,$6,000
Investment interest expense on funds borrowed in 2016 to purchase stocks and bonds,$15,000
What is the maximum amount that Terrance can deduct in 2017 as investment interest expense?

Accepted Answer

A) $6,000. 
B) $8,000. 
C) $14,000. 
D) $15,000. 
A) $6,000. 
B) $8,000. 
C) $14,000. 
D) $15,000.

Question 10

If a taxpayer's personal property is completely destroyed,the casualty loss deduction is still reduced by a required floor amount.

Accepted Answer

A) True 
 B)False

Question 11

Karin lives in California,a state that imposes a tax on income.The following information relates to Karin's state income taxes for 2017: $\begin{array}{ll}
\text { Taxes withheld in 2017}& \$3,000\
\text {State refund received in 2017 from the 2016 tax return }&300 \
\text {Additional assessment paid in 2017 on the 2015 tax return }&800 \
\end{array}$
 Assuming she elects to deduct state and local income taxes,what amount should Karin use as an itemized deduction for state and local income taxes for her 2017 federal income tax return?

Accepted Answer

A) $1,100. 
B) $2,700. 
C) $3,800. 
D) $4,100. 
A) $1,100. 
B) $2,700. 
C) $3,800. 
D) $4,100.

Question 12

Unreimbursed employee business expenses for travel qualify as itemized deductions subject to the 2% floor.

Accepted Answer

A) True 
 B)False

Question 13

In 2017,Rachelle's house boat was destroyed by a storm.She had purchased the boat in 2014 for $45,000.On what form(s)will Rachelle report this loss?

Accepted Answer

A) Form 4684,Casualties and Thefts,and Schedule A,Itemized Deductions. 
B) Form 4684,Casualties and Theft,and Schedule D,Capital Gains and Losses. 
C) Form 4797,Sales of Business Property and Involuntary Conversions,and Schedule D,Capital Gains and Losses. 
D) On the first page of Form 1040. 
A) Form 4684,Casualties and Thefts,and Schedule A,Itemized Deductions. 
B) Form 4684,Casualties and Theft,and Schedule D,Capital Gains and Losses. 
C) Form 4797,Sales of Business Property and Involuntary Conversions,and Schedule D,Capital Gains and Losses. 
D) On the first page of Form 1040.

Question 14

The standard business mileage rate for automobiles for 2017 is 53.5 cents per mile.

Accepted Answer

A) True 
 B)False

Question 15

Reggie is divorced and 45 years old.In 2017,he had AGI of $55,000.During the year,he incurred and paid the following medical costs: $\begin{array}{ll}
\text { Doctor and dentist fees }&\$1,950 \
\text {Prescription medicines }& 275\
\text {Medical care insurance premiums }&340 \
\text { ealth club fee}& 600\
\text {Crutches for a sprained ankle }&50 \
\end{array}$
 What is Reggie's medical expense deduction (after application of the adjusted gross income limitation)for his 2017 tax return?

Accepted Answer

A) $0. 
B) $2,615. 
C) $3,215. 
D) $4,125. 
A) $0. 
B) $2,615. 
C) $3,215. 
D) $4,125.

Question 16

In order to deduct a charitable contribution,taxpayers must itemize on their return.

Accepted Answer

A) True 
 B)False

Question 17

During the year,Greta's mountain cabin was almost completely destroyed by a fire started in the kitchen.She had adjusted gross income of $110,000 in 2017 and related data with respect to the cabin follows: $\begin{array}{lr}
\text { Cost basis: }&\$121,000\\text { Value before casualty: }&\$155,000\\text { Value after casualty: }&\$15,000
\end{array}$
 Greta was partially insured for the loss and in 2017 she received a $100,000 insurance settlement.What is Greta's allowable casualty loss deduction for 2017?

Accepted Answer

A) $9,900. 
B) $20,000. 
C) $35,900. 
D) $55,000. 
A) $9,900. 
B) $20,000. 
C) $35,900. 
D) $55,000.

Question 18

How is the medical expense deduction calculated? How is it limited?

Accepted Answer

Medical expenses are allowed as itemized

The adjusted gross income limitation on casualty losses is 7.5 percent.

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

Define a personal casualty loss.

For 2017,the AGI threshold for the deductibility of personal casualty losses generally is:

A taxpayer receives a deduction for services rendered to a charitable organization.

Explain the key exception to the general rule concerning the charitable deduction for the contribution of tangible personal property.

If a taxpayer's personal property is completely destroyed,the casualty loss deduction is still reduced by a required floor amount.

Unreimbursed employee business expenses for travel qualify as itemized deductions subject to the 2% floor.

In 2017,Rachelle's house boat was destroyed by a storm.She had purchased the boat in 2014 for $45,000.On what form(s)will Rachelle report this loss?

The standard business mileage rate for automobiles for 2017 is 53.5 cents per mile.

In order to deduct a charitable contribution,taxpayers must itemize on their return.

How is the medical expense deduction calculated? How is it limited?

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

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Exam 5: Itemized Deductions

The adjusted gross income limitation on casualty losses is 7.5 percent.

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

Define a personal casualty loss.

For 2017,the AGI threshold for the deductibility of personal casualty losses generally is:

A taxpayer receives a deduction for services rendered to a charitable organization.

Explain the key exception to the general rule concerning the charitable deduction for the contribution of tangible personal property.

If a taxpayer's personal property is completely destroyed,the casualty loss deduction is still reduced by a required floor amount.

Unreimbursed employee business expenses for travel qualify as itemized deductions subject to the 2% floor.

In 2017,Rachelle's house boat was destroyed by a storm.She had purchased the boat in 2014 for $45,000.On what form(s)will Rachelle report this loss?

The standard business mileage rate for automobiles for 2017 is 53.5 cents per mile.

In order to deduct a charitable contribution,taxpayers must itemize on their return.

How is the medical expense deduction calculated? How is it limited?

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