Exam 10: Deduction and Losses Certain Itemized Deductions

Sadie mailed a check for $2,200 to a qualified charitable organization on December 31,2016.The $2,200 contribution is deductible on Sadie's 2016 tax return.

Ross,who is single,purchased a personal residence eight years ago for $170,000 and took out a mortgage of $100,000 on the property.In May of the current year,when the residence had a fair market value of $220,000 and Ross owed $70,000 on the mortgage,he took out a home equity loan for $110,000.He used the funds to purchase a BMW for himself and a Lexus SUV for his wife.For both vehicles,100% of the use is for personal activities.What is the maximum amount on which Ross can deduct home equity interest?

In 2016,Allison drove 800 miles to volunteer in a project sponsored by a qualified charitable organization in Utah.In addition,she spent $250 for meals while away from home.In total,Allison may take a charitable contribution deduction of $112 (800 miles × $.14)relating to her transportation.

Manny,age 57,developed a severe heart condition,and his physician advised him to install an elevator in his home.The cost of installing the elevator was $15,000,and the increase in the value of the residence was determined to be $5,800.Manny's AGI for the year was $52,000.a. ,except that Manny was paralyzed in an automobile accident and the expenditures were incurred to build entrance and exit ramps and widen the hallways in his home to accommodate his wheelchair.How much of the expenditure can Manny deduct as a medical expense? a.How much of the expenditure can Manny deduct as a medical expense? b.Assume the same facts as in part

Ronaldo contributed stock worth $12,000 to the Children's Protective Agency,a qualified charity.He acquired the stock 20 months ago for $7,000.He may deduct $7,000 as a charitable contribution deduction (subject to percentage limitations).