Exam 5: Itemized Deductions

Which of the following types of taxes are deductible on Schedule A in 2014?

If donated appreciated capital gain property is put to a use that is unrelated to the purpose or function of a charity's tax-exempt status,the contribution must be reduced by the amount of any long-term capital gain that would have been realized if the property had been sold at its fair market value at the time of the contribution.

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

Melissa earned net investment income of $11,000 during 2014 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.Melissa is limited to a deduction of $3,000 of investment interest expense in 2014.

Barbara and Michael (wife and husband)are itemizing their Schedule A expenses on their tax year 2014 return.Michael traveled to Japan for his employer,but was not reimbursed.His meal expenses totaled $500.How much can Michael deduct for meals before applying the 2% of AGI limitation?

In 2014,the Chens' pleasure boat was severely damaged by a hurricane in an area that was declared a federal disaster area.They had AGI of $110,000 in 2014.The following information relates to the craft: The Chens had insurance and received an $80,000 insurance settlement. What is the allowable casualty loss deduction for the Chens in 2014?

Often,individuals who purchase a home with a down payment of less than 20% are required to pay a mortgage insurance premium or,as it is sometimes referred to,private mortgage insurance (PMI).What is the treatment for mortgage insurance contracts issued in 2014?

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

In 2014,Allen's pleasure boat was destroyed by a flood.He had purchased the boat in 2011 for $45,000.On what form(s)will Allen report this loss?

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

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

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.

Loan fees that are not "points",or prepaid interest,are deductible as interest on Schedule A.

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

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

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

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

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

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?

Premiums paid for long-term care insurance are not deductible as medical expenses.