Exam 5: Itemized Deductions

In 2015, Maria who is 43, had adjusted gross income of $27,000, paid the following medical expenses: What amount can Maria deduct as medical expenses (after the adjusted gross income limitation) in calculating her itemized deductions for 2015?

In order to deduct a charitable contribution, taxpayers must itemize on their return.

The cost of aspirin and over-the-counter cough medicine is a deductible medical expense even though they are nonprescription drugs.

During 2015, 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 2015 income tax return?

Tyrell, who is 45, had adjusted gross income of $35,000 in 2015. During the year, he incurred and paid the following medical expenses: Tyrell received $600 in 2015 as a reimbursement for a portion of the doctors' fees. If he were to itemize his deductions, what would be his allowable medical expense deduction after the adjusted gross income limitation is taken into account?

Juan paid the following amounts of interest in 2015: $150 on his personal credit card $9,500 on his home mortgage $750 on a personal car loan, which was not used for business $350 on funds borrowed to purchase tax-exempt securities What is his deductible interest for 2015?

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 for Sheila Jones?

Personal casualty losses resulting from termite damage are deductible.

The Frazins had adjusted gross income of $140,000 in 2015. During the year, their principal residence was severely damaged by a house fire. The pertinent financial information is as follows: The Frazins had some insurance and in 2015 reached a settlement with the insurance company for $110,000 insurance settlement. What is their allowable casualty loss deduction for 2015?

Malika and Henry's vacation home was completely destroyed by fire. They had no insurance to the cover the loss. On which of the following forms would they report their loss?

Maria is single and age 32. In 2015, she had AGI of $35,000. During the year, she incurred and paid the following medical costs: What is Maria's medical expense deduction (afterapplicationoftheadjustedgrossincomelimitation) for her 2015 tax return?

If donated appreciated capital gain property is put to a use that is unrelated to the purpose or function of a charity's tax-exempt status, the contribution must be reduced by the amount of any long-term capital gain that would have been realized if the property had been sold at its fair market value at the time of the contribution.

For 2015, Jorge, a single father, reported the following amounts relating to his investments: What is the maximum amount that Jorge can deduct in 2015 as investment interest expense?

Adrian, an NFL running back, is advised by his physician to install a Jacuzzi in his residence since he is afflicted with a back problem incurred after years of running into linebackers. The cost of installing the Jacuzzi is $6,500. He installs the Jacuzzi in January of 2015, and it increases the value of his residence by $3,500. Disregarding the limitation based on adjusted gross income, how much of the cost of the Jacuzzi may Adrian take into account in determining his medical expense deduction for 2015?

Donations to what types of organizations are tax deductible?

What is the proper treatment for prescription drugs obtained from sources outside the United States, such as Canada, that have been prescribed by a physician for the treatment of a medical condition and the FDA has approved that they can be legally imported?

The standard business mileage rate for automobiles for all of 2015 is 57.5 cents per mile.

Often, individuals who purchase a home with a down payment of less than 20% are required to pay a mortgage insurance premium or, as it is sometimes referred to, private mortgage insurance (PMI). What is the treatment for mortgage insurance contracts issued in 2015?

Donald and May (husband and wife) contributed $15,000 in cash to their synagogue during 2015. They also donated $3,000 to a private foundation which is a nonprofit cemetery organization. They knew a 30% limit applies to contributions to such foundations. Their adjusted gross income for the year 2015 was $30,000. Donald and May's deductible contribution for the year 2015 and any carryover to next year is:

What is qualified residence interest? Are there any limits to the deductibility of qualified residence interest?