Exam 10: Deductions and Losses: Certain Itemized Deductions

Margaret, who is self-employed, paid $6,000 for medical insurance coverage.She can include the $6,000 when calculating her medical expense deduction.

(True/False)

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Question 101

Joseph and Sandra, married taxpayers, took out a mortgage on their home for $350,000 in 1990.In May of this year, when the home had a fair market value of $450,000 and they owed $250,000 on the mortgage, they took out a home equity loan for $220,000.They used the funds to purchase a single engine airplane to be used for recreational travel purposes.What is the maximum amount of debt on which they can deduct home equity interest?

(Multiple Choice)

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Question 102

Paul, a calendar year married taxpayer, files a joint return for 2012. Information for 2012 includes the following: Paul's allowable itemized deductions for 2012 are:

(Multiple Choice)

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Question 103

During the year, Eve (a resident of Billings, Montana) spends three consecutive weeks in Louisville, Kentucky.One week is spent representing the Billings First Christian Church at the national convention, and two weeks are spent vacationing with relatives.One third of Eve's travel expenses will qualify as a charitable deduction.

(True/False)

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(72)

Question 104

Interest paid or accrued during the tax year on aggregate acquisition indebtedness of $2 million or less ($1 million or less for married persons filing separate returns) is deductible as qualified residence interest.

(True/False)

4.8/5

(68)

Question 105

Linda borrowed $60,000 from her parents for a down payment on a condominium.She paid interest of $5,500 in 2010, $0 in 2011, and $9,000 in 2012.The IRS disallowed the deduction. Can you offer any explanation for the disallowance?

(Essay)

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Question 106

Showing 101 - 106 of 106

Margaret, who is self-employed, paid $6,000 for medical insurance coverage.She can include the $6,000 when calculating her medical expense deduction.

Paul, a calendar year married taxpayer, files a joint return for 2012. Information for 2012 includes the following: Paul's allowable itemized deductions for 2012 are:

Interest paid or accrued during the tax year on aggregate acquisition indebtedness of $2 million or less ($1 million or less for married persons filing separate returns) is deductible as qualified residence interest.

Linda borrowed $60,000 from her parents for a down payment on a condominium.She paid interest of $5,500 in 2010, $0 in 2011, and $9,000 in 2012.The IRS disallowed the deduction. Can you offer any explanation for the disallowance?

An Introduction to Taxation and Understanding the Federal Tax Law

Working With the Tax Law

Computing the Tax

Gross Income: Concepts and Inclusions

Gross Income: Exclusions

Deductions and Losses: in General

Deductions and Losses: Certain Business Expenses and Losses

Depreciation, Cost Recovery, Amortization, and Depletion

Deductions: Employee and Self-Employed-Related Expenses

Investor Losses

Tax Credits and Payments

Property Transactions: Determination of Gain or Loss, Basis Considerations, and Nontaxable Exchanges-Part 1

Property Transactions: Determination of Gain or Loss, Basis Considerations, and Nontaxable Exchanges-Part 2

Property Transactions: Capital Gains and Losses, 1231, Recapture Provisions

Alternative Minimum Tax

Accounting Periods and Methods

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Distributions Not in Complete Liquidation

Corporations: Distributions in Complete Liquidation and an Overview of Reorganizations

Partnerships

S: Corporations

Exempt Entities

Multistate Corporate Taxation

Taxation of International Transactions

Tax Practice and Ethics

Income Taxation of Trusts and Estates

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