Question 1

Which of the following employees may deduct the cost of a uniform?

Accepted Answer

A) A stock broker required by her employer to wear a business suit 
B) A construction worker required by her employer to wear blue jeans 
C) A washer repair woman who must wear overalls while on the job 
D) A police officer who must wear a uniform while on duty 
E) A delivery person who must wear khaki-colored clothes on the job 
A) A stock broker required by her employer to wear a business suit 
B) A construction worker required by her employer to wear blue jeans 
C) A washer repair woman who must wear overalls while on the job 
D) A police officer who must wear a uniform while on duty 
E) A delivery person who must wear khaki-colored clothes on the job

Question 2

Daniel lives in a state that charges a vehicle registration fee of $50 plus $20 for every $1,000 of value. During 2014, Daniel paid $170 for registration of his automobile.
a.​How much of the vehicle registration fee is deductible as a personal property tax on Schedule A of Daniel's Form 1040?
b.Explain your answer.

Accepted Answer

The answer of Daniel lives in a state that charges...

Question 3

If a taxpayer contributes a painting to a museum but reserves the right to use the painting for parties, he may not be allowed a deduction for the charitable contribution.

Accepted Answer

A) True 
 B)False

Question 4

Amy paid the following interest expense during 2014: What is the amount of Amy's interest deduction for 2014?

Accepted Answer

A) $3,000 
B) $4,000 
C) $12,300 
D) $16,300 
E) None of the above 
A) $3,000 
B) $4,000 
C) $12,300 
D) $16,300 
E) None of the above

Question 5

If a ballet dancer seeks work as a ditch digger, the expenses of job hunting may be deductible.

Accepted Answer

A) True 
 B)False

Question 6

Jerry and Ann paid the following amounts during 2014: What is the maximum amount they can use as interest expense in calculating itemized deductions for 2014?

Accepted Answer

A) $3,000 
B) $3,150 
C) $4,500 
D) $8,000 
E) None of the above 
A) $3,000 
B) $3,150 
C) $4,500 
D) $8,000 
E) None of the above

Question 7

Casualty and theft losses must be reduced by amounts recovered from insurance coverage.

Accepted Answer

A) True 
 B)False

Question 8

Which one of the following is not tax deductible?

Accepted Answer

A) Real estate taxes 
B) Property taxes 
C) Local income taxes 
D) State income taxes 
E) All of the above are tax deductible 
A) Real estate taxes 
B) Property taxes 
C) Local income taxes 
D) State income taxes 
E) All of the above are tax deductible

Question 9

Harvey itemized deductions on his 2013 income tax return. Harvey plans to itemize deductions again in 2014 and the following information is available regarding state and local income taxes: Assuming he elects to deduct state and local income taxes, the above information should be reported by Harvey in his 2014 tax return as:

Accepted Answer

A) Itemized deduction for state and local income taxes of $2,500, and income from state and local tax refund of $200 
B) Itemized deduction for state and local income taxes of $2,300 
C) Itemized deduction for state and local income taxes of $2,800 
D) Itemized deduction for state and local income taxes of $2,800 and income from state and local tax refund of $500 
E) None of the above 
A) Itemized deduction for state and local income taxes of $2,500, and income from state and local tax refund of $200 
B) Itemized deduction for state and local income taxes of $2,300 
C) Itemized deduction for state and local income taxes of $2,800 
D) Itemized deduction for state and local income taxes of $2,800 and income from state and local tax refund of $500 
E) None of the above

Question 10

During 2014, George, a salaried taxpayer, paid the following taxes which were not incurred in connection with a trade or business: What amount can George claim for 2014 as an itemized deduction for the taxes paid, assuming he elects to deduct state and local income taxes?

Accepted Answer

A) $1,100 
B) $1,150 
C) $1,400 
D) $2,000 
E) None of the above 
A) $1,100 
B) $1,150 
C) $1,400 
D) $2,000 
E) None of the above

Question 11

What is the maximum amount of home equity debt (not acquisition debt) on which interest is fully deductible?

Accepted Answer

A) $0 
B) $50,000 
C) $100,000 
D) $200,000 
E) None of the above 
A) $0 
B) $50,000 
C) $100,000 
D) $200,000 
E) None of the above

Question 12

During 2014, Mary 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 Mary's 2014 income tax return?

Accepted Answer

A) $700 
B) $1,190 
C) $1,450 
D) $1,580 
E) None of the above 
A) $700 
B) $1,190 
C) $1,450 
D) $1,580 
E) None of the above

Question 13

During the current year, Cary and Bill incurred acquisition debt on their residence of $1,300,000 and a home equity loan of $200,000. On a joint tax return, what is the amount of their qualified acquisition debt and qualified home equity debt, respectively?

Accepted Answer

A) $900,000 and $100,000 
B) $1,000,000 and $0 
C) $1,000,000 and $100,000 
D) $1,300,000 and $200,000 
E) None of the above 
A) $900,000 and $100,000 
B) $1,000,000 and $0 
C) $1,000,000 and $100,000 
D) $1,300,000 and $200,000 
E) None of the above

Question 14

Shellie, a single individual, received her Bachelor's degree in 2013, and took a job with a salary of $45,000 per year. In 2014, she began paying interest on qualified education loans. She was able to pay $1,500 in 2014. Which of the following statements is not correct?

Accepted Answer

A) The full $1,500 is deductible in arriving at adjusted gross income (AGI). 
B) If her payment had been $3,000, only $2,500 would have been deductible in arriving at AGI and the $500 excess would have been treated as nondeductible consumer interest. 
C) If her income had been $80,000, the deductible amount would have been phased out. 
D) Taxpayers are not allowed a deduction for education loan interest in 2014. 
A) The full $1,500 is deductible in arriving at adjusted gross income (AGI). 
B) If her payment had been $3,000, only $2,500 would have been deductible in arriving at AGI and the $500 excess would have been treated as nondeductible consumer interest. 
C) If her income had been $80,000, the deductible amount would have been phased out. 
D) Taxpayers are not allowed a deduction for education loan interest in 2014.

Question 15

Randy is advised by his physician to install an elevator in his residence, since he is afflicted with heart disease. The cost of installing the elevator is $10,000 and it has an estimated useful life of 10 years. He installs the elevator in January of 2014, and it increases the value of his residence by $8,000. Disregarding the limitation based on adjusted gross income, how much of the cost of the elevator may Randy take into account in determining his medical expense deduction for 2014?

Accepted Answer

A) $0 
B) $750 
C) $2,000 
D) $10,000 
E) None of the above 
A) $0 
B) $750 
C) $2,000 
D) $10,000 
E) None of the above

Question 16

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

Accepted Answer

A) Union dues 
B) Professional dues and subscriptions 
C) Job hunting expenses 
D) Investment expenses 
E) All of the above are miscellaneous deductions 
A) Union dues 
B) Professional dues and subscriptions 
C) Job hunting expenses 
D) Investment expenses 
E) All of the above are miscellaneous deductions

Question 17

For 2014, Eugene and Linda had adjusted gross income of $30,000. Additional information for 2014 is as follows: What is the maximum amount that they can use as a deduction for charitable contributions for 2014?

Accepted Answer

A) $475 
B) $1,575 
C) $1,900 
D) $3,175 
E) None of the above 
A) $475 
B) $1,575 
C) $1,900 
D) $3,175 
E) None of the above

Question 18

Which of the following miscellaneous deductions are not subject to the 2 percent of adjusted gross income limitation?

Accepted Answer

A) Unreimbursed employee business expenses 
B) Investment expenses 
C) Union dues 
D) Gambling losses to the extent of gambling winnings 
E) None of the above 
A) Unreimbursed employee business expenses 
B) Investment expenses 
C) Union dues 
D) Gambling losses to the extent of gambling winnings 
E) None of the above

Question 19

Weber resides in a state that imposes a tax on income. The following information relating to Weber's state income taxes is available: Assuming he elects to deduct state and local income taxes, what amount should Weber use as state and local income taxes in calculating itemized deductions for his 2014 Federal income tax return?

Accepted Answer

A) $2,700 
B) $3,000 
C) $3,500 
D) $3,800 
E) None of the above 
A) $2,700 
B) $3,000 
C) $3,500 
D) $3,800 
E) None of the above

Question 20

If business property is fully destroyed as a result of a casualty, the loss is equal to the decrease in the fair market value of the property.

Accepted Answer

A) True 
 B)False

Which of the following employees may deduct the cost of a uniform?

If a taxpayer contributes a painting to a museum but reserves the right to use the painting for parties, he may not be allowed a deduction for the charitable contribution.

Amy paid the following interest expense during 2014: What is the amount of Amy's interest deduction for 2014?

If a ballet dancer seeks work as a ditch digger, the expenses of job hunting may be deductible.

Jerry and Ann paid the following amounts during 2014: What is the maximum amount they can use as interest expense in calculating itemized deductions for 2014?

Casualty and theft losses must be reduced by amounts recovered from insurance coverage.

Which one of the following is not tax deductible?

During 2014, George, a salaried taxpayer, paid the following taxes which were not incurred in connection with a trade or business: What amount can George claim for 2014 as an itemized deduction for the taxes paid, assuming he elects to deduct state and local income taxes?

What is the maximum amount of home equity debt (not acquisition debt) on which interest is fully deductible?

During 2014, Mary 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 Mary's 2014 income tax return?

During the current year, Cary and Bill incurred acquisition debt on their residence of $1,300,000 and a home equity loan of $200,000. On a joint tax return, what is the amount of their qualified acquisition debt and qualified home equity debt, respectively?

Shellie, a single individual, received her Bachelor's degree in 2013, and took a job with a salary of $45,000 per year. In 2014, she began paying interest on qualified education loans. She was able to pay $1,500 in 2014. Which of the following statements is not correct?

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

For 2014, Eugene and Linda had adjusted gross income of $30,000. Additional information for 2014 is as follows: What is the maximum amount that they can use as a deduction for charitable contributions for 2014?

Which of the following miscellaneous deductions are not subject to the 2 percent of adjusted gross income limitation?

If business property is fully destroyed as a result of a casualty, the loss is equal to the decrease in the fair market value of the property.

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses, Part I

Business Income and Expenses, Part II

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Withholding, Estimated Payments, and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Exam 5: Itemized Deductions and Other Incentives

Which of the following employees may deduct the cost of a uniform?

If a taxpayer contributes a painting to a museum but reserves the right to use the painting for parties, he may not be allowed a deduction for the charitable contribution.

Amy paid the following interest expense during 2014: What is the amount of Amy's interest deduction for 2014?

If a ballet dancer seeks work as a ditch digger, the expenses of job hunting may be deductible.

Jerry and Ann paid the following amounts during 2014: What is the maximum amount they can use as interest expense in calculating itemized deductions for 2014?

Casualty and theft losses must be reduced by amounts recovered from insurance coverage.

Which one of the following is not tax deductible?

During 2014, George, a salaried taxpayer, paid the following taxes which were not incurred in connection with a trade or business: What amount can George claim for 2014 as an itemized deduction for the taxes paid, assuming he elects to deduct state and local income taxes?

What is the maximum amount of home equity debt (not acquisition debt) on which interest is fully deductible?

During 2014, Mary 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 Mary's 2014 income tax return?

During the current year, Cary and Bill incurred acquisition debt on their residence of $1,300,000 and a home equity loan of $200,000. On a joint tax return, what is the amount of their qualified acquisition debt and qualified home equity debt, respectively?

Shellie, a single individual, received her Bachelor's degree in 2013, and took a job with a salary of $45,000 per year. In 2014, she began paying interest on qualified education loans. She was able to pay $1,500 in 2014. Which of the following statements is not correct?

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

For 2014, Eugene and Linda had adjusted gross income of $30,000. Additional information for 2014 is as follows: What is the maximum amount that they can use as a deduction for charitable contributions for 2014?

Which of the following miscellaneous deductions are not subject to the 2 percent of adjusted gross income limitation?

If business property is fully destroyed as a result of a casualty, the loss is equal to the decrease in the fair market value of the property.

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses, Part I

Business Income and Expenses, Part II

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Withholding, Estimated Payments, and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters