Question 1

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 2

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 3

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 4

Malika and Henry's vacation home was completely destroyed by fire.They had no insurance to the 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,US.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,US.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 5

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

Accepted Answer

A) If the total deduction for all noncash contributions for the year is more than $500,Section A of Form 8283,Noncash Charitable Contributions,must be completed. 
B) A noncash contribution of less than $250 must be supported by a cancelled check,or a receipt,or other written acknowledgement from the charitable organization. 
C) A contribution charged to a credit card is considered a cash contribution for purposes of documentation requirements. 
D) All of the above are true. 
A) If the total deduction for all noncash contributions for the year is more than $500,Section A of Form 8283,Noncash Charitable Contributions,must be completed. 
B) A noncash contribution of less than $250 must be supported by a cancelled check,or a receipt,or other written acknowledgement from the charitable organization. 
C) A contribution charged to a credit card is considered a cash contribution for purposes of documentation requirements. 
D) All of the above are true.

Question 6

If one or more non-cash gifts has a fair market value over $500,the taxpayer must:

Accepted Answer

A) Attach a written explanation to the Form 1040. 
B) Complete Schedule D. 
C) File Form 8283. 
D) Attach a letter from the recipient organization. 
A) Attach a written explanation to the Form 1040. 
B) Complete Schedule D. 
C) File Form 8283. 
D) Attach a letter from the recipient organization.

Question 7

Juan paid the following amounts of interest in 2014: $150 on his personal credit card
$9,500 on his home mortgage
$750 on a personal car loan,which was not used for business
$350 on funds borrowed to purchase tax-exempt securities
What is his deductible interest for 2014?

Accepted Answer

A) $ 350. 
B) $1,250. 
C) $9,500. 
D) $9,850. 
A) $ 350. 
B) $1,250. 
C) $9,500. 
D) $9,850.

Question 8

Using the information in question 41,what is the amount of the charitable contribution carry forward for Sheila Jones?

Accepted Answer

A) $30,000. 
B) $20,000. 
C) $10,000. 
D) $ 0. 
A) $30,000. 
B) $20,000. 
C) $10,000. 
D) $ 0.

Question 9

Individual taxpayers may carry forward for five years charitable contributions that are not allowed as a deduction in the current year due to the adjusted gross income limitation.

Accepted Answer

A) True 
 B)False

Question 10

Taxpayers must itemize their deductions to be allowed a charitable contribution deduction.

Accepted Answer

A) True 
 B)False

Question 11

In 2014,the U.S.President declared a federal disaster in California due to wild fires.Helen lives in the affected area and lost her home in the fires.What choice does she have regarding when she can claim the loss on her tax return?

Accepted Answer

A) It must be claimed in 2013 if the return has not been filed by the date of the loss. 
B) It must be claimed in 2014 if the loss is greater than Helen's modified adjusted gross income. 
C) It may be claimed in 2015 if an election is filed with Helen's 2014 return. 
D) It may be claimed in either 2013 or 2014. 
A) It must be claimed in 2013 if the return has not been filed by the date of the loss. 
B) It must be claimed in 2014 if the loss is greater than Helen's modified adjusted gross income. 
C) It may be claimed in 2015 if an election is filed with Helen's 2014 return. 
D) It may be claimed in either 2013 or 2014.

Question 12

Which of the following costs are potentially deductible on Form 1040,Schedule A as taxes for 2014? 1.Property tax on principal residence.
2)Garbage pickup itemized on the real estate bill.
3)Real estate tax on property owned as an investment.

Accepted Answer

A) None of the items. 
B) 2 and 3. 
C) 1 and 3. 
D) All of the items. 
A) None of the items. 
B) 2 and 3. 
C) 1 and 3. 
D) All of the items.

Question 13

What are four major categories of deductible taxes for individual returns?

Accepted Answer

1.Personal property taxes; 2.L

Question 14

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

Question 15

For 2014,high-income taxpayers do not have to forfeit part of their itemized deductions.

Accepted Answer

A) True 
 B)False

Question 16

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 17

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

Accepted Answer

A) True 
 B)False

Question 18

The cost of aspirin and over-the-counter cough medicine is a deductible medical expense even though they are nonprescription drugs.

Accepted Answer

A) True 
 B)False

Question 19

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 20

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

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

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?

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

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

If one or more non-cash gifts has a fair market value over $500,the taxpayer must:

Juan paid the following amounts of interest in 2014: $150 on his personal credit card $9,500 on his home mortgage $750 on a personal car loan,which was not used for business $350 on funds borrowed to purchase tax-exempt securities What is his deductible interest for 2014?

Using the information in question 41,what is the amount of the charitable contribution carry forward for Sheila Jones?

Individual taxpayers may carry forward for five years charitable contributions that are not allowed as a deduction in the current year due to the adjusted gross income limitation.

Taxpayers must itemize their deductions to be allowed a charitable contribution deduction.

In 2014,the U.S.President declared a federal disaster in California due to wild fires.Helen lives in the affected area and lost her home in the fires.What choice does she have regarding when she can claim the loss on her tax return?

Which of the following costs are potentially deductible on Form 1040,Schedule A as taxes for 2014? 1.Property tax on principal residence. 2)Garbage pickup itemized on the real estate bill. 3)Real estate tax on property owned as an investment.

What are four major categories of deductible taxes for individual returns?

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

For 2014,high-income taxpayers do not have to forfeit part of their itemized deductions.

Itemized deductions are first reported on:

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

The cost of aspirin and over-the-counter cough medicine is a deductible medical expense even though they are nonprescription drugs.

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

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

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

Capital Gains and Other Sales of Property

Rental Property, Royalties, and Income From Flow-Through Entities

Tax Credits

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

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

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?

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

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

If one or more non-cash gifts has a fair market value over $500,the taxpayer must:

Juan paid the following amounts of interest in 2014: $150 on his personal credit card $9,500 on his home mortgage $750 on a personal car loan,which was not used for business $350 on funds borrowed to purchase tax-exempt securities What is his deductible interest for 2014?

Using the information in question 41,what is the amount of the charitable contribution carry forward for Sheila Jones?

Individual taxpayers may carry forward for five years charitable contributions that are not allowed as a deduction in the current year due to the adjusted gross income limitation.

Taxpayers must itemize their deductions to be allowed a charitable contribution deduction.

In 2014,the U.S.President declared a federal disaster in California due to wild fires.Helen lives in the affected area and lost her home in the fires.What choice does she have regarding when she can claim the loss on her tax return?

Which of the following costs are potentially deductible on Form 1040,Schedule A as taxes for 2014? 1.Property tax on principal residence. 2)Garbage pickup itemized on the real estate bill. 3)Real estate tax on property owned as an investment.

What are four major categories of deductible taxes for individual returns?

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

For 2014,high-income taxpayers do not have to forfeit part of their itemized deductions.

Itemized deductions are first reported on:

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

The cost of aspirin and over-the-counter cough medicine is a deductible medical expense even though they are nonprescription drugs.

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

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

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

Capital Gains and Other Sales of Property

Rental Property, Royalties, and Income From Flow-Through Entities

Tax Credits

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