Question 1

Which of the following charitable contributions is not tax deductible?

Accepted Answer

A) Cash donated to a qualified church. 
B) Clothing donated to a qualified veterans' organization. 
C) Time donated to a qualified veterans' organization. 
D) Donation of a car to a qualified non-profit organization. 
E) All of the above are tax deductible. 
A) Cash donated to a qualified church. 
B) Clothing donated to a qualified veterans' organization. 
C) Time donated to a qualified veterans' organization. 
D) Donation of a car to a qualified non-profit organization. 
E) All of the above are tax deductible.

Question 2

Daniel lives in a state that charges a vehicle registration fee of $50 plus $20 for every $1,000 of value.During the current year,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

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 4

Steve keeps a valuable bonsai collection in his back yard.In the current year,thieves disarmed his security system and stole several of the bonsai.The stolen bonsai had a fair market value and adjusted basis of $4,500.Assuming that Steve had no insurance coverage on the bonsai and his adjusted gross income for the current year is $28,000,calculate the amount of his theft loss deduction.

Accepted Answer

The answer of Steve keeps a valuable bonsai collection in...

Question 5

A theft loss is deductible in the year the theft is discovered,even if the theft occurred in a prior year.

Accepted Answer

A) True 
 B)False

Question 6

The interest paid on a loan used to acquire municipal bonds is not deductible.

Accepted Answer

A) True 
 B)False

Question 7

During the current year,Seth,a self-employed individual,paid the following taxes: What amount can Seth claim as an itemized deduction for taxes paid during the current year?

Accepted Answer

A) $2,400 
B) $3,300 
C) $4,200 
D) $5,000 
E) None of the above 
A) $2,400 
B) $3,300 
C) $4,200 
D) $5,000 
E) None of the above

Question 8

Which of the following is not deductible as an itemized deduction?

Accepted Answer

A) State income taxes 
B) Personal property taxes 
C) Charitable contributions 
D) Local income taxes 
E) All of the above may be deductible as itemized deductions 
A) State income taxes 
B) Personal property taxes 
C) Charitable contributions 
D) Local income taxes 
E) All of the above may be deductible as itemized deductions

Question 9

Which of the following interest expense amounts is not deductible in 2017?

Accepted Answer

A) Education loan interest of $2,000,assuming the taxpayer is single and has income of $150,000. 
B) Home equity loan interest of $9,000 on a loan of $100,000,the proceeds of which were used to purchase a vacation home. 
C) Investment interest expense of $10,000,assuming the taxpayer has $15,000 of investment income. 
D) Points of $2,000 paid on a mortgage loan for the purchase of a new principal residence. 
A) Education loan interest of $2,000,assuming the taxpayer is single and has income of $150,000. 
B) Home equity loan interest of $9,000 on a loan of $100,000,the proceeds of which were used to purchase a vacation home. 
C) Investment interest expense of $10,000,assuming the taxpayer has $15,000 of investment income. 
D) Points of $2,000 paid on a mortgage loan for the purchase of a new principal residence.

Question 10

Frank is a resident of a state that imposes a tax on income.The following information pertaining to Frank's state income taxes is available: What amount should Frank use as state and local income taxes in calculating itemized deductions for his 2017 Federal tax return,assuming he deducts state and local income taxes?

Accepted Answer

A) $3,500 
B) $3,700 
C) $4,100 
D) $4,200 
E) None of the above 
A) $3,500 
B) $3,700 
C) $4,100 
D) $4,200 
E) None of the above

Question 11

Tom is employed by a large consulting firm.His employer has an accountable expense reimbursement plan.Tom paid for $3,000 of travel expenses which were directly reimbursed under the plan.How will the travel expenses be treated in Tom's tax return?

Accepted Answer

Tom does not include any of the $3,000 e

Question 12

The investment interest expense deduction is limited to the taxpayer's net investment income.

Accepted Answer

A) True 
 B)False

Question 13

Weber resides in a state that imposes a tax on income.The following information relating to Weber's state income taxes is available: What amount should Weber use as state and local income taxes in calculating itemized deductions for his 2017 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 14

During the current year,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 current year 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 15

Sherry had $5,600 withheld from her wages for state income taxes during 2017.In May of 2017,she received a $450 refund for her prior year state tax return.The amount of Sherry's tax on her 2017 tax return is $6,100 and she pays the additional tax of $500 ($6,100 - $5,600)when she files her state income tax return in April of 2018.
a.​
Assuming she deducts state income tax,how much state income taxes should Sherry deduct on Schedule A of Form 1040 of her 2017 federal income tax return?
b.How should Sherry report the $450 refund?
​

Accepted Answer

The answer of Sherry had $5,600 withheld from her wages...

Question 16

Unreimbursed employee business expenses are miscellaneous itemized deductions,subject to the 2 percent of adjusted gross income limitation.

Accepted Answer

A) True 
 B)False

Question 17

Rachel's employer does not have an accountable plan for employee expenses.Her employer reimburses her for $3,000 of business travel expenses.
a.How much of the reimbursement must Rachel include in income?
b.How much can Rachel take as a miscellaneous itemized deduction subject to the 2 percent floor?

Accepted Answer

The answer of Rachel's employer does not have an accountable...

Question 18

During 2017,Sarah,age 29,had adjusted gross income of $12,000 and paid the following amounts for medical expenses:
In 2017,Sarah drove 137 miles for medical transportation in her personal automobile,and she uses the standard mileage allowance.Her insurance company reimbursed Sarah $300 during the year for the above medical expenses.Using the schedule below,calculate the amount of Sarah's deduction for medical and dental expenses for the 2017 tax year.

Accepted Answer

The answer of During 2017,Sarah,age 29,had adjusted gross income of...

Question 19

During the current year,Mr.and Mrs.West paid the following taxes: What amount can the Wests deduct as property taxes in calculating itemized deductions for the current year?

Accepted Answer

A) $0 
B) $1,900 
C) $2,300 
D) $2,900 
E) None of the above 
A) $0 
B) $1,900 
C) $2,300 
D) $2,900 
E) None of the above

Question 20

Douglas and Dena paid the following amounts of interest during the current year:
​
   
a.Calculate the amount of their allowable deduction for investment interest for the current year.
b.Calculate the amount of Douglas and Dena's total allowable deduction for interest for the current year.

Accepted Answer

The answer of Douglas and Dena paid the following amounts...

Which of the following charitable contributions is not tax deductible?

Which one of the following is not tax deductible?

A theft loss is deductible in the year the theft is discovered,even if the theft occurred in a prior year.

The interest paid on a loan used to acquire municipal bonds is not deductible.

During the current year,Seth,a self-employed individual,paid the following taxes: What amount can Seth claim as an itemized deduction for taxes paid during the current year?

Which of the following is not deductible as an itemized deduction?

Which of the following interest expense amounts is not deductible in 2017?

Tom is employed by a large consulting firm.His employer has an accountable expense reimbursement plan.Tom paid for $3,000 of travel expenses which were directly reimbursed under the plan.How will the travel expenses be treated in Tom's tax return?

The investment interest expense deduction is limited to the taxpayer's net investment income.

Weber resides in a state that imposes a tax on income.The following information relating to Weber's state income taxes is available: What amount should Weber use as state and local income taxes in calculating itemized deductions for his 2017 Federal income tax return?

During the current year,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 current year income tax return?

Unreimbursed employee business expenses are miscellaneous itemized deductions,subject to the 2 percent of adjusted gross income limitation.

During the current year,Mr.and Mrs.West paid the following taxes: What amount can the Wests deduct as property taxes in calculating itemized deductions for the current year?

Douglas and Dena paid the following amounts of interest during the current year: a.Calculate the amount of their allowable deduction for investment interest for the current year. b.Calculate the amount of Douglas and Dena's total allowable deduction for interest for the current year.

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 charitable contributions is not tax deductible?

Which one of the following is not tax deductible?

A theft loss is deductible in the year the theft is discovered,even if the theft occurred in a prior year.

The interest paid on a loan used to acquire municipal bonds is not deductible.

During the current year,Seth,a self-employed individual,paid the following taxes: What amount can Seth claim as an itemized deduction for taxes paid during the current year?

Which of the following is not deductible as an itemized deduction?

Which of the following interest expense amounts is not deductible in 2017?

Tom is employed by a large consulting firm.His employer has an accountable expense reimbursement plan.Tom paid for $3,000 of travel expenses which were directly reimbursed under the plan.How will the travel expenses be treated in Tom's tax return?

The investment interest expense deduction is limited to the taxpayer's net investment income.

Weber resides in a state that imposes a tax on income.The following information relating to Weber's state income taxes is available: What amount should Weber use as state and local income taxes in calculating itemized deductions for his 2017 Federal income tax return?

During the current year,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 current year income tax return?

Unreimbursed employee business expenses are miscellaneous itemized deductions,subject to the 2 percent of adjusted gross income limitation.

During the current year,Mr.and Mrs.West paid the following taxes: What amount can the Wests deduct as property taxes in calculating itemized deductions for the current year?

Douglas and Dena paid the following amounts of interest during the current year: ​ a.Calculate the amount of their allowable deduction for investment interest for the current year. b.Calculate the amount of Douglas and Dena's total allowable deduction for interest for the current year.

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

Douglas and Dena paid the following amounts of interest during the current year: a.Calculate the amount of their allowable deduction for investment interest for the current year. b.Calculate the amount of Douglas and Dena's total allowable deduction for interest for the current year.