Exam 4: Adjustments for Adjusted Gross Income

At the beginning of 2016,Chantel was permanently transferred from her office in New York City to New Jersey.Her office in NYC was 15 miles from her old NY home.For Chantel to meet the distance test for qualifying moving expense deductions,how many miles must the office in New Jersey be from her old home?

Under the terms of a divorce agreement,Bev was to pay her husband Leon $4,000 per month in alimony and $1,500 per month in child support.For a twelve-month period,what is the amount that Bev can deduct from gross income and Leon must include in gross income?

For a taxpayer to be eligible to deduct moving expenses,in addition to the employment test,he or she:

In order to open a Health Savings Plan HSA)account,a taxpayer must qualify under which category:

What are the contribution amounts for both individual and family coverage to a Health Savings Account for a tax payer under 55 years of age for 2016?

Under a divorce agreement executed in 2016,periodic payments of either cash or property must be made at regular intervals to be deductible as alimony.

Deductible moving expenses may include moving household goods and personal effects from the old residence to the new residence.

Which of the following is not deductible as a moving expense?

Rick and Lenora were granted a divorce in 2015.In accordance with the decree,Rick made the following payments to Lenora in 2016: Child support payments contingent on the age of the child $ 4,000 Annual cash payments other than child support $ 6,000 How much should Lenora include in her 2016 taxable income as alimony?

An eligible educator for the educator expense deduction must work at least 600 hours during the school year.

Renee and Thomas obtained a divorce effective May 1,2016.In accordance with the divorce decree,Thomas was required to pay Renee alimony of $2,500 per month payments were to stop only in the event of her death or remarriage).Furthermore,he was to transfer title of their house which had a cost of $150,000 and a fair value of $200,000 on the date of transfer,and was to continue making the monthly mortgage payments of $1,500. a)Determine the amount of Thomas's alimony deduction in 2016. b)Determine the amount of Renee's alimony income in 2016. c)Assume that Thomas was required to pay off the remaining mortgage balance in the event Renee died.Does Thomas's alimony deduction in 2016 change? Why or why not?

Elena is required under a divorce agreement effective January 1,2016 to pay $800 of alimony and $250 of child support per month for 10 years.Elena also makes a voluntary payment of $150 per month.How much of each monthly payment can Elena deduct as alimony in 2016?

Sade,who is single and self-employed as a graphic artist,had net earnings from self-employment of $7,250 for the year.She paid $285 a month for health insurance premiums over the last year.Sade is entitled to a for AGI deduction for health insurance of:

Qualified education expenses for the purpose of deductible student loan interest include expenses for:

If a divorce agreement executed in 2016 specifies that a portion of the amount of an alimony payment is contingent upon the status of a child,that portion is considered to be a child support payment.

Mike and Karen were divorced.Their only marital property was a personal residence with a fair market value of $1.5 million and a cost of $575,000.Under the terms of the divorce agreement,Mike would receive the house and Mike would pay Karen $125,000 each year for 5 years,or until Karen's death,whichever should occur first.Mike and Karen were not living together when the payments were made by Mike.Mike paid the $625,000 to Karen over the five-year period.Mike's recognized gain from the transfer of the house to him is: