Exam 5: Itemized Deductions

Barbara and Michael (wife and husband) are itemizing their Schedule A expenses on their tax year 2015 return. Michael traveled to Japan for his employer, but was not reimbursed. His meal expenses totaled $500. How much can Michael deduct for meals before applying the 2% of AGI limitation?

Which of the following miscellaneous itemized deductions is not subject to the 2% of adjusted gross income limitation?

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?

During 2015, Sam paid the following taxes: What amount can Sam deduct as property taxes in calculating his itemized deductions for 2015?

Gloria resides in a state that imposes a tax on income. The following information relates to Gloria's state income tax situation for 2015: Assuming she elects to deduct state and local income taxes, what amount should Gloria use to calculate itemized deductions for her 2015 federal income tax return?

For 2015, 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.

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

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

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

The interest paid on a loan used to acquire municipal bonds is deductible as investment interest expense.

For 2015, high-income taxpayers do not have to forfeit part of their itemized deductions.

During 2015 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 2015 income tax return?

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.

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

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

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

Taxpayers must itemize their deductions to be allowed a charitable contribution deduction.

In 2015, 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 2015. The following information relates to the craft: The Chens had insurance and received an $80,000 insurance settlement. What is the allowable casualty loss deduction for the Chens in 2015?

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.

For 2015, taxpayers may take an above-the-line deduction for the amount of mortgage insurance premium paid in 2015.