Exam 5: Itemized Deductions

In 2016,the Chens' pleasure boat was severely damaged by a hurricane in an area that was declared a federal disaster area.They had AGI of $110,000 in 2016.The following information relates to the craft: Cost Basis $ 95,000 FMV before casualty 145,000 FMV after casualty 25,000 The Chens had insurance and received an $80,000 insurance settlement.What is the allowable casualty loss deduction for the Chens in 2016?

The adjusted gross income limitation on casualty losses is 7.5 percent.

Itemized deductions are first reported on:

In 2016,the U.S.President declared a federal disaster in California due to wild fires.Helen lives in the affected area and lost her home in the fires.What choice does she have regarding when she can claim the loss on her tax return?

For 2016,taxpayers may take an above-the-line deduction for the amount of mortgage insurance premium paid in 2016.

Explain the key exception to the general rule concerning the charitable deduction for the contribution of tangible personal property.

What is the maximum amount of personal residence acquisition debt on which interest is fully deductible?

Some charitable contributions are limited to 50% of the taxpayer's AGI,others may be limited to a lower % of AGI.Deductions to which of the following organizations are subject to the 50% limitation on deductible contributions?

If an accountant in public accounting seeks work as a controller in private industry,the expenses of job hunting may be deductible.

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

Generally,the taxpayer may deduct the cost of medical expenses on Schedule A for which of the following?

On December 31,2016,Roger charged a $1,800 contribution to a qualified charitable organization to his credit card.He will not pay the credit card bill until January 2017.The $1,800 contribution is deductible on Roger's 2016 tax return.

For those under age 65,only medical expenses in excess of 7.5 percent of adjusted gross income are deductible.

Which of the following types of taxes are deductible on Schedule A in 2016?

Sonia's car was completely destroyed in an accident that was her fault.Her loss was $8,500 and her insurance company reimbursed her $6,500.What amount of casualty loss can Sonia claim on her return before deduction limitations)?

Moesha paid $60 for Girl Scout cookies and $50 for Cub Scout cracker jacks.Moesha may claim the full $110 as a charitable contribution deduction.

Loan fees that are not "points",or prepaid interest,are deductible as interest on Schedule A.

Which of the following costs are potentially deductible on Form 1040,Schedule A as taxes for 2016? 1.Property tax on principal residence. 2)Garbage pickup itemized on the real estate bill. 3)Real estate tax on property owned as an investment. 4)Sales tax paid on the purchase of a personal car.

For investment interest expense in 2016,the deduction by a taxpayer is:

In 2016,federal income taxes may not be deducted as an itemized deduction on Schedule A.