Exam 6: Individual Deductions

Carly donated inventory (ordinary income property) to a church.She purchased the inventory last month for $100,000,and on the date of the gift,it had a fair market value of $92,000.What is her maximum charitable contribution deduction for the year if her AGI is $200,000?

Which of the following is a true statement?

Which of the following is a true statement?

Jim was in an auto accident this year.Jim paid $2,450 to repair his car after the accident and his insurance only reimbursed him $400.Jim bought his car several years ago for $1,500.What is the amount of casualty loss from this accident before Jim applies any casualty loss floor limitations?

To deduct a moving expense,the taxpayer must be employed or self employed for a specific amount of time after the move.

To qualify as a charitable deduction the donation must be made by cash or by check.Donations of property also qualify.

Which of the following is a true statement?

Glenn is an accountant who races stock cars as a hobby.This year Glenn was paid a salary of $80,000 from his employer and won $2,000 in various races.What is the effect of the racing activities on Glenn's taxable income if Glenn has also incurred $4,200 of hobby expenses this year? Assume that Glenn itemizes his deductions but has no other miscellaneous itemized deductions.

Which of the following is a true statement?

Which of the following taxes will not qualify as an itemized deduction?

Han is a self-employed carpenter and his wife,Christine,works full-time as a grade school teacher.Han paid $525 for carpentry tools and supplies,and Christine paid $3,600 as her share of health insurance premiums for Han and herself in a qualified plan provided by the school district.Which of the following is a true statement?

Which of the following itemized deductions is not subject to the itemized deduction phase-out?