Question 1

All personal casualty losses incurred during the year are added together and only one $100 floor amount is used to reduce the casualty deduction.

Accepted Answer

A) True 
 B)False

Question 2

If real property is sold during the year, the property taxes must be allocated between the buyer and seller based on the number of days the property was held by each party.

Accepted Answer

A) True 
 B)False

Question 3

If a ballet dancer seeks work as a ditch digger, the expenses of job hunting may be deductible.

Accepted Answer

A) True 
 B)False

Question 4

​Frank was so entertained by the Paris Symphony on his visit to France that he mailed them a donation of $100 to support their organization as soon as he returned home to Seattle. Frank may deduct the charitable contribution to the Paris Symphony on his U.S. tax return.

Accepted Answer

A) True 
 B)False

Question 5

In 2016, state income taxes may be deducted as an itemized deduction on Schedule A.

Accepted Answer

A) True 
 B)False

Question 6

Carla is a high school teacher who is required by her school district to take continuing education courses which are offered at the local college. She is also in the process of taking classes at a different university where she is pursuing her Ph.D. to become a research specialist. She pays the tuition for both schools. Which of the following is true?

Accepted Answer

A) She may deduct all of the tuition from each school because they are education expenses related to job skill improvement. 
B) She may not deduct tuition from either school. 
C) She may not deduct the continuing education tuition because it is required by her job. 
D) She may deduct the continuing education tuition from the local college because it meets her employer's requirement to maintain her current job skills. 
E) None of the above is correct. 
A) She may deduct all of the tuition from each school because they are education expenses related to job skill improvement. 
B) She may not deduct tuition from either school. 
C) She may not deduct the continuing education tuition because it is required by her job. 
D) She may deduct the continuing education tuition from the local college because it meets her employer's requirement to maintain her current job skills. 
E) None of the above is correct.

Question 7

Which of the following is not deductible as an itemized deduction?

Accepted Answer

A) State income taxes 
B) Personal property taxes 
C) Charitable contributions 
D) Local income taxes 
E) All of the above may be deductible as itemized deductions 
A) State income taxes 
B) Personal property taxes 
C) Charitable contributions 
D) Local income taxes 
E) All of the above may be deductible as itemized deductions

Question 8

Which of the following is not an itemized deduction?

Accepted Answer

A) Medical expenses 
B) IRA contribution deduction 
C) Personal property taxes 
D) Union dues 
E) All of the above are itemized deductions 
A) Medical expenses 
B) IRA contribution deduction 
C) Personal property taxes 
D) Union dues 
E) All of the above are itemized deductions

Question 9

Mortgage interest on a taxpayer's personal residence is not deductible on Schedule A.

Accepted Answer

A) True 
 B)False

Question 10

​If business property is completely destroyed, the casualty or theft loss is the lesser of the decrease in market value or the adjusted basis of the property.

Accepted Answer

A) True 
 B)False

Question 11

​Perry Mayson, a single taxpayer, graduated law school last year with quite a bit of qualified student loan debt and ends up paying $4,300 in interest on the loan in the current tax year. Fortunately, Perry is well compensated and earns adjusted gross income of $85,000 during the current year. Perry may deduct his student loan interest in the current year.

Accepted Answer

A) True 
 B)False

Question 12

​Brittany determined that she paid $450 in gasoline excise taxes during the year when she bought gas for her commute to and from work. Brittany's gas excise taxes are deductible as an itemized deduction.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following employees may deduct the cost of a uniform? ​

Accepted Answer

A) A stock broker required by her employer to wear a business suit 
B) A construction worker required by her employer to wear blue jeans 
C) A member of the clergy that must wear ornate robes for special ceremonies 
D) A police detective who must wear a suit and tie while on duty 
E) A delivery person who must wear khaki-colored clothes on the job 
A) A stock broker required by her employer to wear a business suit 
B) A construction worker required by her employer to wear blue jeans 
C) A member of the clergy that must wear ornate robes for special ceremonies 
D) A police detective who must wear a suit and tie while on duty 
E) A delivery person who must wear khaki-colored clothes on the job

Question 14

Which of the following is correct for Qualified Tuition Programs?

Accepted Answer

A) Contributions are deductible and qualified educational expense distributions are tax-free. 
B) Contributions are not deductible and qualified educational expense distributions are tax-free. 
C) Contributions are deductible and qualified educational expense distributions are taxable. 
D) Contributions are not deductible and qualified educational expense distributions are taxable. 
A) Contributions are deductible and qualified educational expense distributions are tax-free. 
B) Contributions are not deductible and qualified educational expense distributions are tax-free. 
C) Contributions are deductible and qualified educational expense distributions are taxable. 
D) Contributions are not deductible and qualified educational expense distributions are taxable.

Question 15

During the current year, Cary and Bill incurred acquisition debt on their residence of $1,300,000 and a home equity loan of $200,000. On a joint tax return, what is the amount of their qualified acquisition debt and qualified home equity debt, respectively?

Accepted Answer

A) $900,000 and $100,000 
B) $1,000,000 and $0 
C) $1,000,000 and $100,000 
D) $1,300,000 and $200,000 
E) None of the above 
A) $900,000 and $100,000 
B) $1,000,000 and $0 
C) $1,000,000 and $100,000 
D) $1,300,000 and $200,000 
E) None of the above

Question 16

If a taxpayer installs special equipment in their home for medical reasons, some or all of the cost can be included as a deductible medical expense.​

Accepted Answer

A) True 
 B)False

Question 17

Sherry had $5,600 withheld from her wages for state income taxes during 2016. In May of 2016, she received a $450 refund for her prior year state tax return. The amount of Sherry's tax on her 2016 tax return is $6,100 and she pays the additional tax of $500 ($6,100 - $5,600) when she files her state income tax return in April of 2017.
a.​
Assuming she elects to deduct the state income tax, how much state income taxes should Sherry deduct on Schedule A of Form 1040 of her 2016 federal income tax return?
b.How should Sherry report the $450 refund?

Accepted Answer

The answer of Sherry had $5,600 withheld from her wages...

Question 18

Which of the following miscellaneous deductions are not subject to the 2 percent of adjusted gross income limitation?

Accepted Answer

A) Unreimbursed employee business expenses 
B) Investment expenses 
C) Unrecovered annuity costs at death 
D) Union dues 
E) None of the above 
A) Unreimbursed employee business expenses 
B) Investment expenses 
C) Unrecovered annuity costs at death 
D) Union dues 
E) None of the above

Question 19

Expenses of education to improve or maintain existing skills are deductible as a miscellaneous itemized deduction even if the education incidentally leads to qualification in a new job or business.

Accepted Answer

A) True 
 B)False

Question 20

Weber resides in a state that imposes a tax on income. The following information relating to Weber's state income taxes is available: Assuming he elects to deduct state and local income taxes, what amount should Weber use as state and local income taxes in calculating itemized deductions for his 2016 Federal income tax return?

Accepted Answer

A) $2,700 
B) $3,000 
C) $3,500 
D) $3,800 
E) None of the above 
A) $2,700 
B) $3,000 
C) $3,500 
D) $3,800 
E) None of the above

All personal casualty losses incurred during the year are added together and only one $100 floor amount is used to reduce the casualty deduction.

If real property is sold during the year, the property taxes must be allocated between the buyer and seller based on the number of days the property was held by each party.

If a ballet dancer seeks work as a ditch digger, the expenses of job hunting may be deductible.

Frank was so entertained by the Paris Symphony on his visit to France that he mailed them a donation of $100 to support their organization as soon as he returned home to Seattle. Frank may deduct the charitable contribution to the Paris Symphony on his U.S. tax return.

In 2016, state income taxes may be deducted as an itemized deduction on Schedule A.

Which of the following is not deductible as an itemized deduction?

Which of the following is not an itemized deduction?

Mortgage interest on a taxpayer's personal residence is not deductible on Schedule A.

If business property is completely destroyed, the casualty or theft loss is the lesser of the decrease in market value or the adjusted basis of the property.

Brittany determined that she paid $450 in gasoline excise taxes during the year when she bought gas for her commute to and from work. Brittany's gas excise taxes are deductible as an itemized deduction.

Which of the following employees may deduct the cost of a uniform?

Which of the following is correct for Qualified Tuition Programs?

During the current year, Cary and Bill incurred acquisition debt on their residence of $1,300,000 and a home equity loan of $200,000. On a joint tax return, what is the amount of their qualified acquisition debt and qualified home equity debt, respectively?

If a taxpayer installs special equipment in their home for medical reasons, some or all of the cost can be included as a deductible medical expense.

Which of the following miscellaneous deductions are not subject to the 2 percent of adjusted gross income limitation?

Expenses of education to improve or maintain existing skills are deductible as a miscellaneous itemized deduction even if the education incidentally leads to qualification in a new job or business.

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses Part I

Business Income and Expenses Part II

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Withholding Estimated Payments and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Exam 5: Itemized Deductions and Other Incentives

All personal casualty losses incurred during the year are added together and only one $100 floor amount is used to reduce the casualty deduction.

If real property is sold during the year, the property taxes must be allocated between the buyer and seller based on the number of days the property was held by each party.

If a ballet dancer seeks work as a ditch digger, the expenses of job hunting may be deductible.

​Frank was so entertained by the Paris Symphony on his visit to France that he mailed them a donation of $100 to support their organization as soon as he returned home to Seattle. Frank may deduct the charitable contribution to the Paris Symphony on his U.S. tax return.

In 2016, state income taxes may be deducted as an itemized deduction on Schedule A.

Which of the following is not deductible as an itemized deduction?

Which of the following is not an itemized deduction?

Mortgage interest on a taxpayer's personal residence is not deductible on Schedule A.

​If business property is completely destroyed, the casualty or theft loss is the lesser of the decrease in market value or the adjusted basis of the property.

​Brittany determined that she paid $450 in gasoline excise taxes during the year when she bought gas for her commute to and from work. Brittany's gas excise taxes are deductible as an itemized deduction.

Which of the following employees may deduct the cost of a uniform? ​

Which of the following is correct for Qualified Tuition Programs?

During the current year, Cary and Bill incurred acquisition debt on their residence of $1,300,000 and a home equity loan of $200,000. On a joint tax return, what is the amount of their qualified acquisition debt and qualified home equity debt, respectively?

If a taxpayer installs special equipment in their home for medical reasons, some or all of the cost can be included as a deductible medical expense.​

Which of the following miscellaneous deductions are not subject to the 2 percent of adjusted gross income limitation?

Expenses of education to improve or maintain existing skills are deductible as a miscellaneous itemized deduction even if the education incidentally leads to qualification in a new job or business.

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses Part I

Business Income and Expenses Part II

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Withholding Estimated Payments and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Frank was so entertained by the Paris Symphony on his visit to France that he mailed them a donation of $100 to support their organization as soon as he returned home to Seattle. Frank may deduct the charitable contribution to the Paris Symphony on his U.S. tax return.

If business property is completely destroyed, the casualty or theft loss is the lesser of the decrease in market value or the adjusted basis of the property.

Brittany determined that she paid $450 in gasoline excise taxes during the year when she bought gas for her commute to and from work. Brittany's gas excise taxes are deductible as an itemized deduction.

Which of the following employees may deduct the cost of a uniform?

If a taxpayer installs special equipment in their home for medical reasons, some or all of the cost can be included as a deductible medical expense.