Question 1

Personal property taxes paid on personal-use assets,such as the family car,are deductible on Schedule A.

Accepted Answer

A) True 
 B)False

Question 2

Flo and Artis wife and husband)are itemizing their Schedule A expenses on their tax year 2016 return.Artis traveled to Japan for his employer,but was not reimbursed.His meal expenses totaled $500.How much can Artis deduct for meals before applying the 2% of AGI limitation?

Accepted Answer

A) $500. 
B) $0. 
C) $250. 
D) $150. 
A) $500. 
B) $0. 
C) $250. 
D) $150.

Question 3

Prescription drugs obtained outside the United States,such as from Canada,are never deductible on a U.S.tax return.

Accepted Answer

A) True 
 B)False

Question 4

For 2016,Jorge,a single father,reported the following amounts relating to his investments: Net investment income from interest $ 7,000 Interest expense on a loan to purchase stocks 2,000 Interest expense on funds borrowed in 2015 to purchase land for investment 6,000
What is the maximum amount that Jorge can deduct in 2016 as investment interest expense?

Accepted Answer

A) $6,000. 
B) $7,000. 
C) $8,000. 
D) $2,000. 
A) $6,000. 
B) $7,000. 
C) $8,000. 
D) $2,000.

Question 5

For 2016,Lydia had adjusted gross income of $40,000 and made the following charitable contributions:   What is the maximum amount that she can deduct as a charitable contribution for 2016?

Accepted Answer

A) $3,050. 
B) $3,200. 
C) $1,650. 
D) $1,850. 
A) $3,050. 
B) $3,200. 
C) $1,650. 
D) $1,850.

Question 6

The cost of a chiropractor's services does not qualify as a medical deduction.

Accepted Answer

A) True 
 B)False

Question 7

During 2016 Shakira paid the following expenses:   What is the total amount of medical expenses before application of the adjusted gross income limitation)that would enter into the calculation of itemized deductions on Shakira's 2016 income tax return?

Accepted Answer

A) $1,575. 
B) $525. 
C) $1,500. 
D) $1,325. 
A) $1,575. 
B) $525. 
C) $1,500. 
D) $1,325.

Question 8

How does the declaration of a federally declared disaster area benefit the taxpayer concerning a casualty loss?

Accepted Answer

A taxpayer can elect to amend

Question 9

In order to deduct a charitable contribution,taxpayers must itemize on their return.

Accepted Answer

A) True 
 B)False

Question 10

Donations to what types of organizations are tax deductible?

Accepted Answer

Subject to certain limitations,deduction

Question 11

Taxes assessed for local benefits,such as a new sidewalk,are deductible as real property taxes.

Accepted Answer

A) True 
 B)False

Question 12

Tyrell,who is 45,had adjusted gross income of $35,000 in 2016.During the year,he incurred and paid the following medical expenses:   Tyrell received $600 in 2016 as a reimbursement for a portion of the doctors' fees.If he were to itemize his deductions,what would be his allowable medical expense deduction after the adjusted gross income limitation is taken into account?

Accepted Answer

A) $1,020. 
B) $3,920. 
C) $4,520. 
D) $420. 
A) $1,020. 
B) $3,920. 
C) $4,520. 
D) $420.

Question 13

Which of the following may not be deducted either totally or partially as medical expenses? Disregard any limitations which may apply.)

Accepted Answer

A) $600 for eyeglasses. 
B) $3,000 to a family physician for medical care. 
C) $300 for maternity clothes. 
D) $1,000 long-term care insurance. 
A) $600 for eyeglasses. 
B) $3,000 to a family physician for medical care. 
C) $300 for maternity clothes. 
D) $1,000 long-term care insurance.

Question 14

The Goldsteins had adjusted gross income of $140,000 in 2016.During the year,their principal residence was severely damaged by a house fire.The pertinent financial information is as follows:   The Goldsteins had some insurance and in 2016 reached a settlement with the insurance company for $110,000 insurance settlement.What is their allowable casualty loss deduction for 2016?

Accepted Answer

A) $9,900. 
B) $36,000. 
C) $23,900. 
D) None of these. 
A) $9,900. 
B) $36,000. 
C) $23,900. 
D) None of these.

Question 15

For determination of deductibility,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 16

Taxes deductible as an itemized deduction include all of the following except:

Accepted Answer

A) Taxes that the taxpayer paid on property owned by his/her parents or children. 
B) State and local income taxes. 
C) Real estate property taxes based on the assessed value of the property. 
D) Personal property taxes based on the value of the property. 
A) Taxes that the taxpayer paid on property owned by his/her parents or children. 
B) State and local income taxes. 
C) Real estate property taxes based on the assessed value of the property. 
D) Personal property taxes based on the value of the property.

Question 17

Ignacio and Perla are married and both are professors at a local college.They contribute money to various organizations each year and file a joint return.Their adjusted gross income for 2016 is $100,000.They contributed to the following organizations in 2016:
• $3,500 to the Sierra club
• $10,000 to the Red Cross
• $2,000 to a local political candidate
• $11,000 to cancer research foundation
• Donated clothing to Goodwill.Ignacio purchased the items for $450,but the thrift shop value of the same items at a local second-hand store is equal to $60.)
How much can Ignacio and Perla deduct as charitable contributions for the year 2016?

Accepted Answer

A) $24,560. 
B) $26,560. 
C) $25,710. 
D) $26,500. 
A) $24,560. 
B) $26,560. 
C) $25,710. 
D) $26,500.

Question 18

For 2016,the investment interest expense deduction is limited to the taxpayer's gross investment income.

Accepted Answer

A) True 
 B)False

Question 19

During the year,Alicia's personal summer home was almost completely destroyed by a fire started in a work room.She had adjusted gross income of $110,000 in 2016 and related data with respect to the summer home follows: Cost basis: $ 121,000
Value before casualty: $ 155,000
Value after casualty: $ 15,000
Alicia was partially insured for the loss and in 2016 she received a $100,000 insurance settlement.What is Alicia's allowable casualty loss deduction for 2016?

Accepted Answer

A) $20,900. 
B) $55,000. 
C) $35,900. 
D) $9,900. 
A) $20,900. 
B) $55,000. 
C) $35,900. 
D) $9,900.

Question 20

The threshold amount for the deductibility of allowable medical expenses for those under 65 in 2016 is:

Accepted Answer

A) 10% of taxable income. 
B) 7)5% of AGI. 
C) 7)5% of taxable income. 
D) 10% of AGI. 
A) 10% of taxable income. 
B) 7)5% of AGI. 
C) 7)5% of taxable income. 
D) 10% of AGI.

Personal property taxes paid on personal-use assets,such as the family car,are deductible on Schedule A.

Flo and Artis wife and husband)are itemizing their Schedule A expenses on their tax year 2016 return.Artis traveled to Japan for his employer,but was not reimbursed.His meal expenses totaled $500.How much can Artis deduct for meals before applying the 2% of AGI limitation?

Prescription drugs obtained outside the United States,such as from Canada,are never deductible on a U.S.tax return.

For 2016,Lydia had adjusted gross income of $40,000 and made the following charitable contributions: What is the maximum amount that she can deduct as a charitable contribution for 2016?

The cost of a chiropractor's services does not qualify as a medical deduction.

During 2016 Shakira paid the following expenses: What is the total amount of medical expenses before application of the adjusted gross income limitation)that would enter into the calculation of itemized deductions on Shakira's 2016 income tax return?

How does the declaration of a federally declared disaster area benefit the taxpayer concerning a casualty loss?

In order to deduct a charitable contribution,taxpayers must itemize on their return.

Donations to what types of organizations are tax deductible?

Taxes assessed for local benefits,such as a new sidewalk,are deductible as real property taxes.

Which of the following may not be deducted either totally or partially as medical expenses? Disregard any limitations which may apply.)

For determination of deductibility,all personal casualty losses incurred during the year are added together and only one $100 floor amount is used to reduce the casualty deduction.

Taxes deductible as an itemized deduction include all of the following except:

For 2016,the investment interest expense deduction is limited to the taxpayer's gross investment income.

The threshold amount for the deductibility of allowable medical expenses for those under 65 in 2016 is:

Introduction to Taxation, the Income Tax Formula, and Form 1040ez

Expanded Tax Formula, forms 1040a and 1040, and Basic Concepts

Gross Income: Inclusions and Exclusions

Adjustments for Adjusted Gross Income

Self-Employed Business Income Line 12 of Form 1040 and Schedule C

Capital Gains and Other Sales of Property Schedule D and Form 4797

Rental Property, royalties, and Income From Flow-Through Entities Line 17, form 1040, and Schedule E

Tax Credits Form 1040, lines 46 Through 54 and Lines 66a Through 73

Payroll Taxes

Retirement and Other Tax-Deferred Plans and Annuities

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Partnership Taxation

Corporate Taxation

Filters

Exam 5: Itemized Deductions

Personal property taxes paid on personal-use assets,such as the family car,are deductible on Schedule A.

Flo and Artis wife and husband)are itemizing their Schedule A expenses on their tax year 2016 return.Artis traveled to Japan for his employer,but was not reimbursed.His meal expenses totaled $500.How much can Artis deduct for meals before applying the 2% of AGI limitation?

Prescription drugs obtained outside the United States,such as from Canada,are never deductible on a U.S.tax return.

For 2016,Lydia had adjusted gross income of $40,000 and made the following charitable contributions: What is the maximum amount that she can deduct as a charitable contribution for 2016?

The cost of a chiropractor's services does not qualify as a medical deduction.

During 2016 Shakira paid the following expenses: What is the total amount of medical expenses before application of the adjusted gross income limitation)that would enter into the calculation of itemized deductions on Shakira's 2016 income tax return?

How does the declaration of a federally declared disaster area benefit the taxpayer concerning a casualty loss?

In order to deduct a charitable contribution,taxpayers must itemize on their return.

Donations to what types of organizations are tax deductible?

Taxes assessed for local benefits,such as a new sidewalk,are deductible as real property taxes.

Which of the following may not be deducted either totally or partially as medical expenses? Disregard any limitations which may apply.)

For determination of deductibility,all personal casualty losses incurred during the year are added together and only one $100 floor amount is used to reduce the casualty deduction.

Taxes deductible as an itemized deduction include all of the following except:

For 2016,the investment interest expense deduction is limited to the taxpayer's gross investment income.

The threshold amount for the deductibility of allowable medical expenses for those under 65 in 2016 is:

Introduction to Taxation, the Income Tax Formula, and Form 1040ez

Expanded Tax Formula, forms 1040a and 1040, and Basic Concepts

Gross Income: Inclusions and Exclusions

Adjustments for Adjusted Gross Income

Self-Employed Business Income Line 12 of Form 1040 and Schedule C

Capital Gains and Other Sales of Property Schedule D and Form 4797

Rental Property, royalties, and Income From Flow-Through Entities Line 17, form 1040, and Schedule E

Tax Credits Form 1040, lines 46 Through 54 and Lines 66a Through 73

Payroll Taxes

Retirement and Other Tax-Deferred Plans and Annuities

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Partnership Taxation

Corporate Taxation

Filters