Exam 5: Itemized Deductions and Other Incentives

Roberto, age 50, has AGI of $110,000 for 2016. He has medical expenses of $13,200. How much of the medical expenses can Roberto deduct on his Schedule A for 2016?

Rob's employer has an accountable plan for employee expenses. His employer reimburses him for $1,000 of professional dues and subscriptions. a.How much of the reimbursement must Rob include in income? b.How much can Rob claim as a miscellaneous itemized deduction subject to the 2 percent floor?

Harvey itemized deductions on his 2015 income tax return. Harvey plans to itemize deductions again in 2016 and the following information is available regarding state and local income taxes: Assuming he elects to deduct state and local income taxes, the above information should be reported by Harvey in his 2016 tax return as:

Pat has a dependent daughter and files as head of household. She has AGI of $376,000. What percentage of the $4,050 personal exemption and $4,050 dependency exemption may she deduct on her 2016 income tax return?

Tom is employed by a large consulting firm. His employer has an accountable expense reimbursement plan. Tom paid for $3,000 of travel expenses which were directly reimbursed under the plan. How will the travel expenses be treated in Tom's tax return?

The amount of a special assessment charged to residents for the installation of sidewalks on their street is not deductible on Schedule A as property taxes.

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

To deduct interest paid with respect to indebtedness, the taxpayer must be legally liable for the debt.

Which one of the following is not tax deductible?

The cost of a chiropractor's services qualifies as a medical deduction.

Which of the following is true with respect to an education incentive?

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

​Dr. Wheeler donates her time and services to Doctors with No Limits, a qualified charity. Dr. Wheeler can take a tax deduction for the $3,400 market value of her time donated.

The 2016 standard mileage rate for taxpayer use of a personal auto for transportation for medical care is ​$.23 per mile.

What income tax form does an employee use to report business expenses that are not reimbursed by an employer under an accountable plan?

Sam operates a manufacturing company as a sole proprietorship. During the current year, the machinery used in the manufacturing process is totally destroyed by a fire in the building. The machinery had an adjusted basis of $16,000 and a fair market value of $11,000 on the date of the fire. The machinery was insured and Sam receives $10,000 from the insurance company. Sam does not replace the machinery. Assuming Sam has adjusted gross income of $60,000 for the current year, calculate the amount of Sam's casualty loss for the current year.

For married taxpayers filing a joint return in 2016, at what AGI level does the phase-out limit for contributions to Qualified Tuition Programs (Section 529 plans) start?

​For a taxpayer with adjusted gross income of $56,000, private mortgage insurance (PMI) is deductible in 2016.

Ronald donates publicly traded Microsystems stock with a basis of $2,000 and a fair market value of $20,000 to the local library, which is considered a public charity. Ronald has $30,000 of adjusted gross income, and he purchased the stock 15 years ago. How is this contribution treated on Ronald's tax return?

Which one of the following is not considered a casualty or theft loss for tax purposes?