Exam 5: Itemized Deductions

Tyrone,who is single and under age 65,had the following income in 2014 • $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 2014.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 2014?

In 2014,Maria who is 43,had adjusted gross income of $27,000,paid the following medical expenses: Prescription medicines $275 Dentist and doctor expenses 1,350 Health insurance premiums 400 Two pair of eyeglasses 185 What amount can Maria deduct as medical expenses (after the adjusted gross income limitation)in calculating her itemized deductions for 2014?

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

For 2014,the AGI threshold for the deductibility of personal casualty losses generally is:

During the year,Megan's personal summer home was almost completely destroyed by a fire started in a work room.She had adjusted gross income of $110,000 in 2014 and related data with respect to the summer home follows: Cost basis: $121,000 Value before casualty: $155,000 Value after casualty: $ 15,000 Megan was partially insured for the loss and in 2014 she received a $100,000 insurance settlement.What is Megan's allowable casualty loss deduction for 2014?

Donations to what types of organizations are tax deductible?

What is usually the largest miscellaneous itemized deduction category? Does it require any special treatment?

Which of the following organizations qualify for deductible charitable contributions?

What is home equity indebtedness and how does it differ from acquisition indebtedness? Are there any limits to the deductibility of home equity loan interest?

In 2014,federal income taxes may not be deducted as an itemized deduction on Schedule A.

Describe the concept of a 10% floor for medical deductions.

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.

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

Donald and May (husband and wife)contributed $15,000 in cash to their synagogue during 2014.They also donated $3,000 to a private foundation which is a nonprofit cemetery organization.They knew a 30% limit applies to contributions to such foundations.Their adjusted gross income for the year 2014 was $30,000.Donald and May's deductible contribution for the year 2014 and any carryover to next year is:

During 2014 Shakira paid the following expenses: 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 Shakira's 2014 income tax return?

On December 31,2014,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 2015.The $2,200 contribution is deductible on Roger's 2014 tax return.

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

For determination of deductibility,all personal casualty losses incurred during the year are added together and only one $100 floor amount is used to reduce the casualty deduction.

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.

The Frazins had adjusted gross income of $140,000 in 2014.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 Frazins had some insurance and in 2014 reached a settlement with the insurance company for $110,000 insurance settlement.What is their allowable casualty loss deduction for 2014?