Question 1

How does the declaration of a federally declared disaster area benefit the taxpayer concerning a casualty loss?

Accepted Answer

A taxpayer can elect to amend

Question 2

In 2015, 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?

Accepted Answer

A)  It must be claimed in 2014 if the return has not been filed by the date of the loss. 
B)  It must be claimed in 2015 if the loss is greater than Helen's modified adjusted gross income. 
C)  It may be claimed in 2016 if an election is filed with Helen's 2015 return. 
D) It may be claimed in either 2014 or 2015. 
A)  It must be claimed in 2014 if the return has not been filed by the date of the loss. 
B)  It must be claimed in 2015 if the loss is greater than Helen's modified adjusted gross income. 
C)  It may be claimed in 2016 if an election is filed with Helen's 2015 return. 
D) It may be claimed in either 2014 or 2015.

Question 3

In 2015, federal income taxes may not be deducted as an itemized deduction on Schedule A.

Accepted Answer

A) True 
 B)False

Question 4

When performing services for a charitable organization, is any charitable deduction allowed? If so, explain.

Accepted Answer

No deduction is permitted for services r

Question 5

For 2015, the investment interest expense deduction is limited to the taxpayer's gross investment income.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following costs are potentially deductible on Form 1040, Schedule A as taxes for 2015?
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.

Accepted Answer

A)  None of the items. 
B)  2 and 4. 
C)  1, 3, & 4. 
D) All of the items. 
A)  None of the items. 
B)  2 and 4. 
C)  1, 3, & 4. 
D) All of the items.

Question 7

Premiums paid for long-term care insurance policies may be deductible as medical expenses.

Accepted Answer

A) True 
 B)False

Question 8

In order for a personal property tax to be deductible as an itemized deduction, what three tests are required?

Accepted Answer

State or local property taxes must meet

Question 9

The cost of a chiropractor's services does not qualify as a medical deduction.

Accepted Answer

A) True 
 B)False

Question 10

Taxpayers can deduct qualified residence interest on their principal residence and on a second residence selected by the taxpayer.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)  $1,000,000. 
B)  $500,000. 
C)  $250,000. 
D) $0. 
A)  $1,000,000. 
B)  $500,000. 
C)  $250,000. 
D) $0.

Question 12

To qualify for a medical expense deduction as taxpayer's dependent, a person must be a dependent either at the time the medical services were provided or at the time the expenses were paid. A person generally qualifies as a dependent for purposes of the medical expense deduction if the person:

Accepted Answer

A)  Would qualify as a dependent except for the amount of gross income. 
B)  Was a foreign student staying briefly at taxpayer's home. 
C)  Is an unmarried adult child of taxpayer's sibling. 
D) Is the unrelated caregiver for taxpayer's elderly parents. 
A)  Would qualify as a dependent except for the amount of gross income. 
B)  Was a foreign student staying briefly at taxpayer's home. 
C)  Is an unmarried adult child of taxpayer's sibling. 
D) Is the unrelated caregiver for taxpayer's elderly parents.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Premiums paid for long-term care insurance are not deductible as medical expenses.

Accepted Answer

A) True 
 B)False

How does the declaration of a federally declared disaster area benefit the taxpayer concerning a casualty loss?

In 2015, 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?

In 2015, federal income taxes may not be deducted as an itemized deduction on Schedule A.

When performing services for a charitable organization, is any charitable deduction allowed? If so, explain.

For 2015, the investment interest expense deduction is limited to the taxpayer's gross investment income.

Which of the following costs are potentially deductible on Form 1040, Schedule A as taxes for 2015? 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.

Premiums paid for long-term care insurance policies may be deductible as medical expenses.

In order for a personal property tax to be deductible as an itemized deduction, what three tests are required?

The cost of a chiropractor's services does not qualify as a medical deduction.

Taxpayers can deduct qualified residence interest on their principal residence and on a second residence selected by the taxpayer.

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

To qualify for a medical expense deduction as taxpayer's dependent, a person must be a dependent either at the time the medical services were provided or at the time the expenses were paid. A person generally qualifies as a dependent for purposes of the medical expense deduction if the person:

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

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

Premiums paid for long-term care insurance are not deductible as medical expenses.

Introduction to Taxation, the Income Tax Formula, and Form 1040ez

Expanded Tax Formula, Forms 1040a and 1040, and Basic Concepts

Gross Income: Inclusions and Exclusions

Adjustments for Adjusted Gross Income

Self-Employed Business Income

Capital Gains and Other Sales of Property

Rental Property, Royalties, Income From Flow-Through Entities

Tax Credits

Payroll Taxes

Retirement and Other Tax-Deferred Plans and Annuities:

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Partnership Taxation

Corporate Taxation

Filters

Exam 5: Itemized Deductions

How does the declaration of a federally declared disaster area benefit the taxpayer concerning a casualty loss?

In 2015, 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?

In 2015, federal income taxes may not be deducted as an itemized deduction on Schedule A.

When performing services for a charitable organization, is any charitable deduction allowed? If so, explain.

For 2015, the investment interest expense deduction is limited to the taxpayer's gross investment income.

Which of the following costs are potentially deductible on Form 1040, Schedule A as taxes for 2015? 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.

Premiums paid for long-term care insurance policies may be deductible as medical expenses.

In order for a personal property tax to be deductible as an itemized deduction, what three tests are required?

The cost of a chiropractor's services does not qualify as a medical deduction.

Taxpayers can deduct qualified residence interest on their principal residence and on a second residence selected by the taxpayer.

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

To qualify for a medical expense deduction as taxpayer's dependent, a person must be a dependent either at the time the medical services were provided or at the time the expenses were paid. A person generally qualifies as a dependent for purposes of the medical expense deduction if the person:

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

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

Premiums paid for long-term care insurance are not deductible as medical expenses.

Introduction to Taxation, the Income Tax Formula, and Form 1040ez

Expanded Tax Formula, Forms 1040a and 1040, and Basic Concepts

Gross Income: Inclusions and Exclusions

Adjustments for Adjusted Gross Income

Self-Employed Business Income

Capital Gains and Other Sales of Property

Rental Property, Royalties, Income From Flow-Through Entities

Tax Credits

Payroll Taxes

Retirement and Other Tax-Deferred Plans and Annuities:

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Partnership Taxation

Corporate Taxation

Filters