Exam 7: Itemized Deductions

If the principal reason for a taxpayer's presence in an institution (e.g.a nursing home) is the need and availability of medical care,the entire cost of lodging and meals is considered qualified medical expenditures.

Corner Grocery,Inc.,a C corporation with high taxable income,donates some of its inventory to the County Food Bank (a charitable organization) which distributes food to the needy.At the time of the contribution,the FMV of the inventory was $20,000,and Corner Grocery's basis was $12,000.Corner Grocery will be allowed a charitable contribution deduction of

Expenditures incurred in removing structural barriers in the home of a physically handicapped individual are deductible only to the extent the costs exceed the increase in fair market value to the property attributable to the capital expenditure.

Finance charges on personal credit cards are deductible interest expense.

Riva borrows $10,000 that she intends to use for purchasing supplies for her business.She temporarily deposits the funds in her personal checking account.Prior to the deposit,the checking account held $40,000 of personal funds.Riva books a vacation for $6,000 and writes a check to the travel agency from her personal account.Later in the month,the business supplies bill arrives and Riva writes a check for $10,000 from the personal account.With respect to the interest expense on the $10,000 loan,

Which of the following is not required substantiation for a noncash charitable contribution?

Tasneem,a single taxpayer has paid the following amounts in 2017: Tasneem's AGI is $363,500.What is her net itemized deduction allowed?

Investment interest expense which is disallowed because it exceeds the taxpayer's net investment income may be carried over and treated as incurred in subsequent years.

For charitable contribution purposes,capital gain property includes property which,if sold,would produce a long-term capital gain.

During February and March,Jade spends approximately 90 hours of her time volunteering at the Salvation Army (a public charity) preparing tax returns for low-income families.As a CPA,Jade normally bills her clients at $130 per hour for her time.Jade also drives her car a total of 800 miles in performing her voluntary work.Jade's deductible contribution is