Exam 5: Itemized Deductions

On April 3^rd,Megan discovers that her diamond broach has been stolen.The broach had a fair market value and adjusted basis of $15,000.The broach was not covered by Megan's insurance policy and her adjusted gross income for the year was $65,000.What would be her casualty loss deduction for the year?

In 2016,Alan was required by his employer to use his car for work.His employer's mileage reimbursement was $0.25 per mile.If Alan's actual expenses are more than the reimbursement,he can deduct the excess amount on Schedule C.

Which of the following statements is true regarding documentation requirements for charitable contributions?

If the donation is greater than $250,what kind of written acknowledgment must the taxpayer obtain from the recipient organization?

What is home equity indebtedness and how does it differ from acquisition indebtedness? Are there any limits to the deductibility of home equity loan interest?

In the past,high-income taxpayers' itemized deductions have been reduced by the lower of 3% of the excess of AGI over the applicable amount or 80% of the itemized deductions otherwise allowable for the tax year.For 2016,this limitation on the amount of itemized deductions for high-income taxpayers is back in effect.

Donald and May husband and wife)contributed $15,000 in cash to their synagogue during 2016.They also donated $3,000 to a private foundation which is a nonprofit cemetery organization.They knew a 30% limit applies to contributions to such foundations.Their adjusted gross income for the year 2016 was $30,000.Donald and May's deductible contribution for the year 2016 and any carryover to next year is:

Tyrone,who is single and under age 65,had the following income in 2016: • $59,800 in wages • $200 in interest • $10,000 in gambling winnings • $5,000 in short-term capital gains. Tyrone filed a Schedule A,Itemized Deductions,for 2016.While preparing that schedule,Tyrone,who had no above-the-line deductions,listed the following below-the-line deduction items he had incurred during the year: • $2,500 in medical expenses • $8,000 of mortgage interest paid • $2,000 in real estate taxes • $1,600 in state taxes • $12,000 in gambling losses • $3,400 in unreimbursed employee business expenses. What is the total amount of Schedule A itemized deductions that Tyrone can report in 2016?

Which of the following costs are deductible on Form 1040,Schedule A,as taxes? 1.Real estate taxes on property owned in Mexico. 2)Property tax portion of vehicle registration,based on the value of the auto. 3)Fine for speeding. 4)Personal property tax on a pleasure boat.

Explain the change in the tax treatment regarding the limitation of itemized deductions for high-income taxpayers.

In 2016,Maria who is 43,had adjusted gross income of $27,000,paid the following medical expenses: What amount can Maria deduct as medical expenses after the adjusted gross income limitation)in calculating her itemized deductions for 2016?

Which of the deductions listed below is subject to the phase-out of the total dollar amount of certain itemized deductions that may be claimed by high-income individuals?

During 2016,Oscar paid the following taxes: What amount can Oscar deduct as property taxes in calculating his itemized deductions for 2016?

Which of the following miscellaneous deductions are subject to the 2% of adjusted gross income limitation?

Which of the following organizations qualify for deductible charitable contributions?

Juan paid the following amounts of interest in 2016: $150 on his personal credit card $9,500 on his home mortgage $750 on a personal car loan,which was not used for business $350 on funds borrowed to purchase tax-exempt securities What is his deductible interest for 2016?

Cynthia lives in California,a state that imposes a tax on income.The following information relates to Cynthia's state income taxes for 2016: Assuming she elects to deduct state and local income taxes,what amount should Cynthia use as an itemized deduction for state and local income taxes for her 2016 federal income tax return?

Which of the following interest expenses incurred by Juanna is treated as personal interest expense and,therefore,not deductible as an itemized deduction?

What is qualified residence interest? Are there any limits to the deductibility of qualified residence interest?

What is usually the largest miscellaneous itemized deduction category? Does it require any special treatment?