Question 1

The cost of a chiropractor's services does not qualify as a medical deduction.

Accepted Answer

A) True 
 B)False

Question 2

For 2014,sales taxes are deductible as an itemized deduction based only on the actual amount of sales taxes paid.

Accepted Answer

A) True 
 B)False

Question 3

How does the declaration of a federally declared disaster area benefit the taxpayer concerning a casualty loss?

Accepted Answer

A taxpayer can elect to amend

Question 4

Some contributions are limited to 50% of the taxpayer's AGI,others may be limited to a lower % of AGI.Deductions to which of the following organizations are subject to the 50% limitation on deductible contributions?

Accepted Answer

A) Churches and conventions of organizations of churches and educational organizations. 
B) Hospitals and certain medical research organizations associated with these hospitals. 
C) Rotary,Elks,and Lions Clubs who raise money for public causes. 
D) Both a and b. 
A) Churches and conventions of organizations of churches and educational organizations. 
B) Hospitals and certain medical research organizations associated with these hospitals. 
C) Rotary,Elks,and Lions Clubs who raise money for public causes. 
D) Both a and b.

Question 5

Marty and Cindy are married and both are professors at a local college.They contribute money to various organizations each year and file a joint return.Their adjusted gross income for 2014 is $100,000.They contributed to the following organizations in 2014: • $3,500 to the Sierra club
• $10,000 to the Red Cross
• $2,000 to a local political candidate
• $11,000 to cancer research foundation
• Donated clothing to Goodwill.(Marty purchased
The items for $850,but the thrift shop value of the
Same items at a local second-hand store is equal to $60.)
How much can Cindy and Marty deduct as charitable contributions for the year 2014?

Accepted Answer

A) $26,560. 
B) $26,500. 
C) $25,710. 
D) $24,560. 
A) $26,560. 
B) $26,500. 
C) $25,710. 
D) $24,560.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

For investment interest expense in 2014,the deduction by a taxpayer is:

Accepted Answer

A) Limited to the investment interest expense paid in 2014. 
B) Limited to the taxpayer's net investment income for 2014. 
C) Not limited. 
D) Limited to the taxpayer's gross investment income for 2014. 
A) Limited to the investment interest expense paid in 2014. 
B) Limited to the taxpayer's net investment income for 2014. 
C) Not limited. 
D) Limited to the taxpayer's gross investment income for 2014.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Which of the following organizations do not qualify for deductible charitable contributions?

Accepted Answer

A) The Red Cross. 
B) A political party. 
C) Religious organizations. 
D) All of the above. 
A) The Red Cross. 
B) A political party. 
C) Religious organizations. 
D) All of the above.

Question 10

The threshold amount for the deductibility of allowable medical expenses for those under 65 in 2014 is:

Accepted Answer

A) 10% of AGI. 
B) 10% of taxable income. 
C) 7.5% of AGI. 
D) 7.5% of taxable income. 
A) 10% of AGI. 
B) 10% of taxable income. 
C) 7.5% of AGI. 
D) 7.5% of taxable income.

Question 11

Adrian,an NFL running back,is advised by his physician to install a Jacuzzi in his residence since he is afflicted with a back problem incurred after years of running into linebackers.The cost of installing the Jacuzzi is $6,500.He installs the Jacuzzi in January of 2014,and it increases the value of his residence by $3,500.Disregarding the limitation based on adjusted gross income,how much of the cost of the Jacuzzi may Adrian take into account in determining his medical expense deduction for 2014?

Accepted Answer

A) $ 3,000. 
B) $ 3,500. 
C) $ 6,500. 
D) $10,000. 
A) $ 3,000. 
B) $ 3,500. 
C) $ 6,500. 
D) $10,000.

Question 12

For 2014,describe the treatment that taxpayers can elect to take for the amount of either (1)state and local income taxes or (2)state and local general sales taxes paid during the tax year.

Accepted Answer

For 2014,taxpayers can elect to take an

Question 13

For medical expenses,only expenses in excess of 7.5 percent of adjusted gross income are deductible.

Accepted Answer

A) True 
 B)False

The cost of a chiropractor's services does not qualify as a medical deduction.

For 2014,sales taxes are deductible as an itemized deduction based only on the actual amount of sales taxes paid.

How does the declaration of a federally declared disaster area benefit the taxpayer concerning a casualty loss?

Some contributions are limited to 50% of the taxpayer's AGI,others may be limited to a lower % of AGI.Deductions to which of the following organizations are subject to the 50% limitation on deductible contributions?

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

For investment interest expense in 2014,the deduction by a taxpayer is:

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

Which of the following organizations do not qualify for deductible charitable contributions?

The threshold amount for the deductibility of allowable medical expenses for those under 65 in 2014 is:

For 2014,describe the treatment that taxpayers can elect to take for the amount of either (1)state and local income taxes or (2)state and local general sales taxes paid during the tax year.

For medical expenses,only expenses in excess of 7.5 percent of adjusted gross income are deductible.

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

The cost of a chiropractor's services does not qualify as a medical deduction.

For 2014,sales taxes are deductible as an itemized deduction based only on the actual amount of sales taxes paid.

How does the declaration of a federally declared disaster area benefit the taxpayer concerning a casualty loss?

Some contributions are limited to 50% of the taxpayer's AGI,others may be limited to a lower % of AGI.Deductions to which of the following organizations are subject to the 50% limitation on deductible contributions?

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

For investment interest expense in 2014,the deduction by a taxpayer is:

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

Which of the following organizations do not qualify for deductible charitable contributions?

The threshold amount for the deductibility of allowable medical expenses for those under 65 in 2014 is:

For 2014,describe the treatment that taxpayers can elect to take for the amount of either (1)state and local income taxes or (2)state and local general sales taxes paid during the tax year.

For medical expenses,only expenses in excess of 7.5 percent of adjusted gross income are deductible.

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