Question 1

In order for a personal property tax to be deductible as an itemized deduction,what three tests are required?

Accepted Answer

State or local property taxes must meet

Question 2

Individual taxpayers may carry forward for five years charitable contributions that are not allowed as a deduction in the current year due to the adjusted gross income limitation.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) Professional dues and subscriptions. 
B) Union dues. 
C) Job-hunting expenses. 
D) All of these are considered miscellaneous deductions. 
A) Professional dues and subscriptions. 
B) Union dues. 
C) Job-hunting expenses. 
D) All of these are considered miscellaneous deductions.

Question 4

Rick and Claudia live in an apartment and have purchased land where they plan to build their home.They have a mortgage on the lot and have received a Form 1098 from the lender showing the interest paid on the note.Interest paid on this loan is deductible as home mortgage interest on their Schedule A.

Accepted Answer

A) True 
 B)False

Question 5

A taxpayer receives a deduction for services rendered to a charitable organization.

Accepted Answer

A) True 
 B)False

Question 6

How is the medical expense deduction calculated? How is it limited?

Accepted Answer

Medical expenses are allowed as itemized

Question 7

What are the general limits or floors placed on deductible personal casualty losses?

Accepted Answer

First,each separate casualty is reduced

Question 8

For 2016,high-income taxpayers do not have to forfeit part of their itemized deductions.

Accepted Answer

A) True 
 B)False

Question 9

For 2016,describe the treatment that taxpayers can elect to take for the amount of either 1)state and local income taxes or 2)state and local general sales taxes paid during the tax year.

Accepted Answer

For 2016,taxpayers can elect to take an

Question 10

Which of the following expenses is deductible,but subject to the 2% limitation on Form 1040,Schedule A,Job Expenses and Most Other Miscellaneous Itemized Deductions?

Accepted Answer

A) The cost of hauling tools to work in the trunk of a car. 
B) Appraisal fees on the sale of a personal residence. 
C) Uniforms for a UPS delivery person. 
D) A blue suit for an accountant. 
A) The cost of hauling tools to work in the trunk of a car. 
B) Appraisal fees on the sale of a personal residence. 
C) Uniforms for a UPS delivery person. 
D) A blue suit for an accountant.

Question 11

What is the maximum amount of home equity indebtedness on which interest is fully deductible?

Accepted Answer

A) $100,000. 
B) $200,000. 
C) $0. 
D) $50,000. 
A) $100,000. 
B) $200,000. 
C) $0. 
D) $50,000.

Question 12

For 2016,the AGI threshold for the deductibility of personal casualty losses generally is:

Accepted Answer

A) 5%. 
B) 10%. 
C) 7)5%. 
D) 2%. 
A) 5%. 
B) 10%. 
C) 7)5%. 
D) 2%.

Question 13

Which of the following miscellaneous itemized deductions is not subject to the 2% of AGI threshold?

Accepted Answer

A) Unreimbursed employee expenses. 
B) Tax preparation fees. 
C) Gambling losses. 
D) Investment expenses. 
A) Unreimbursed employee expenses. 
B) Tax preparation fees. 
C) Gambling losses. 
D) Investment expenses.

Question 14

For the current year,Sheila Jones had adjusted gross income of $100,000.During the year,she contributed $6,000 to her church and an additional $3,000 to qualified charities.She also contributed religious artwork with a fair market value of $60,000 and a basis of $20,000 to her church.The church intends to display the religious artwork in the church foyer.What is the amount of the charitable contribution carry forward beyond the current year for Sheila Jones?

Accepted Answer

A) $0. 
B) $30,000. 
C) $10,000. 
D) $20,000. 
A) $0. 
B) $30,000. 
C) $10,000. 
D) $20,000.

Question 15

Which of the following expenses is not deductible as medical expense?

Accepted Answer

A) Wig purchased upon the advice of a physician for the mental health of a patient who has lost all of his/her hair from disease. 
B) Insulin used for diabetes. 
C) Acupuncture used to treat migraines. 
D) Swimming lessons,recommended by a doctor for improvement of general health. 
A) Wig purchased upon the advice of a physician for the mental health of a patient who has lost all of his/her hair from disease. 
B) Insulin used for diabetes. 
C) Acupuncture used to treat migraines. 
D) Swimming lessons,recommended by a doctor for improvement of general health.

Question 16

In 2015,Roxanne's nephew was her dependent.For 2016,he no longer qualifies as her dependent.However,she paid $650 in 2016 for medical expenses she incurred in 2015 when he was her dependent.Roxanne can include the $650 in figuring her medical expense deduction in 2016.

Accepted Answer

A) True 
 B)False

Question 17

Premiums paid for long-term care insurance are not deductible as medical expenses.

Accepted Answer

A) True 
 B)False

Question 18

For the year ended December 31,2016,Sheniqua,a single professional,reported the following: Net investment income from interest,$14,000
Other expenses unrelated to the generation of interest,$6,000
Investment interest expense on funds borrowed in 2015 to purchase stocks and bonds,$15,000
What is the maximum amount that Sheniqua can deduct in 2016 as investment interest expense?

Accepted Answer

A) $14,000. 
B) $6,000. 
C) $15,000. 
D) $8,000. 
A) $14,000. 
B) $6,000. 
C) $15,000. 
D) $8,000.

Question 19

When are travel costs deductible as medical costs? How are medical travel costs calculated?

Accepted Answer

Travel costs are deductible when incurre

Question 20

Theft losses are deducted in the tax year in which the theft was discovered,rather than the year of theft,if the discovery comes later.

Accepted Answer

A) True 
 B)False

In order for a personal property tax to be deductible as an itemized deduction,what three tests are required?

Individual taxpayers may carry forward for five years charitable contributions that are not allowed as a deduction in the current year due to the adjusted gross income limitation.

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

A taxpayer receives a deduction for services rendered to a charitable organization.

How is the medical expense deduction calculated? How is it limited?

What are the general limits or floors placed on deductible personal casualty losses?

For 2016,high-income taxpayers do not have to forfeit part of their itemized deductions.

For 2016,describe the treatment that taxpayers can elect to take for the amount of either 1)state and local income taxes or 2)state and local general sales taxes paid during the tax year.

Which of the following expenses is deductible,but subject to the 2% limitation on Form 1040,Schedule A,Job Expenses and Most Other Miscellaneous Itemized Deductions?

What is the maximum amount of home equity indebtedness on which interest is fully deductible?

For 2016,the AGI threshold for the deductibility of personal casualty losses generally is:

Which of the following miscellaneous itemized deductions is not subject to the 2% of AGI threshold?

Which of the following expenses is not deductible as medical expense?

In 2015,Roxanne's nephew was her dependent.For 2016,he no longer qualifies as her dependent.However,she paid $650 in 2016 for medical expenses she incurred in 2015 when he was her dependent.Roxanne can include the $650 in figuring her medical expense deduction in 2016.

Premiums paid for long-term care insurance are not deductible as medical expenses.

When are travel costs deductible as medical costs? How are medical travel costs calculated?

Theft losses are deducted in the tax year in which the theft was discovered,rather than the year of theft,if the discovery comes later.

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

In order for a personal property tax to be deductible as an itemized deduction,what three tests are required?

Individual taxpayers may carry forward for five years charitable contributions that are not allowed as a deduction in the current year due to the adjusted gross income limitation.

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

A taxpayer receives a deduction for services rendered to a charitable organization.

How is the medical expense deduction calculated? How is it limited?

What are the general limits or floors placed on deductible personal casualty losses?

For 2016,high-income taxpayers do not have to forfeit part of their itemized deductions.

For 2016,describe the treatment that taxpayers can elect to take for the amount of either 1)state and local income taxes or 2)state and local general sales taxes paid during the tax year.

Which of the following expenses is deductible,but subject to the 2% limitation on Form 1040,Schedule A,Job Expenses and Most Other Miscellaneous Itemized Deductions?

What is the maximum amount of home equity indebtedness on which interest is fully deductible?

For 2016,the AGI threshold for the deductibility of personal casualty losses generally is:

Which of the following miscellaneous itemized deductions is not subject to the 2% of AGI threshold?

Which of the following expenses is not deductible as medical expense?

In 2015,Roxanne's nephew was her dependent.For 2016,he no longer qualifies as her dependent.However,she paid $650 in 2016 for medical expenses she incurred in 2015 when he was her dependent.Roxanne can include the $650 in figuring her medical expense deduction in 2016.

Premiums paid for long-term care insurance are not deductible as medical expenses.

When are travel costs deductible as medical costs? How are medical travel costs calculated?

Theft losses are deducted in the tax year in which the theft was discovered,rather than the year of theft,if the discovery comes later.

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