Exam 5: Itemized Deductions

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

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

In 2014, Roxanne's nephew was her dependent. For 2015, he no longer qualifies as her dependent. However, she paid $650 in 2015 for medical expenses she incurred in 2014 when he was her dependent. Roxanne can include the $650 in figuring her medical expense deduction in 2015.

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?

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

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?

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

For the year ended December 31, 2015, 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 2014 to purchase stocks and bonds, $15,000 What is the maximum amount that Sheniqua can deduct in 2015 as investment interest expense?

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 2015, this limitation on the amount of itemized deductions for high-income taxpayers is back in effect.

Describe the concept of a 10% floor for medical deductions.

During 2015, Manuel and Gloria incurred acquisition debt on their new residence of $1,150,000. On their joint tax return, what is the amount of their qualified acquisition debt on which they can deduct interest?

During the year, Megan's personal summer home was almost completely destroyed by a fire started in a work room. She had adjusted gross income of $110,000 in 2015 and related data with respect to the summer home follows: Megan was partially insured for the loss and in 2015 she received a $100,000 insurance settlement. What is Megan's allowable casualty loss deduction for 2015?

Which of the following types of taxes are deductible on Schedule A in 2015?

Which of the following organizations do not qualify for deductible charitable contributions?

For 2015, sales taxes are deductible as an itemized deduction based only on the actual amount of sales taxes paid.

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.

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. If Sheila chooses to itemize her deductions, what is the amount of her deductible charitable contribution?

Cynthia makes weekly cash contributions of $30 to her church. She pays by check. Since her annual contributions to the church are more than $250, she must obtain a written acknowledgment from the church to support her contribution deduction.

Robert and Becky (husband and wife) are both lawyers and they contribute money to various organizations each year. They file a joint return and their adjusted gross income for 2015 is $100,000. They contributed to the following organizations in 2015: • $5,000 to Alta Sierra country club • $10,000 to prevent cruelty to animals • $2,000 to State Bar Association Political Action Committee • $12,000 to cancer research foundation • Donated clothing to Salvation Army. (Robert purchased the items for $1,000, but the fair market value of the same items at a thrift store is equal to $50.) How much can Robert and Becky deduct as charitable contributions for the year 2015?

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?