Exam 5: Itemized Deductions and Other Incentives

Diane's engagement ring is stolen in the current year.It cost $1,500 and was worth $1,500.Diane makes $30,000 as an office manager and has no other income.What is her casualty loss deduction?

(Essay)

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Question 41

Which one of the following is not considered a casualty or theft loss for tax purposes?

(Multiple Choice)

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Question 42

Jon,age 45,had adjusted gross income of $26,000 in 2017.During the year,he incurred and paid the following medical expenses: Jon received $900 in 2017 as a reimbursement for a portion of the doctors' fees.If Jon were to itemize his deductions,what would be his allowable medical expense deduction after the adjusted gross income limitation is taken into account?

(Multiple Choice)

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Question 43

Agnes is retired and has only a $12,000 annual pension as income.In 2017,Agnes' aunt dies and leaves her land worth $1.2 million.Agnes sees no need for the land and donates it immediately to a qualified public charity.Agnes may deduct a $1.2 million charitable contribution on her 2017 tax return.

(True/False)

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Question 44

Individual taxpayers may carry forward indefinitely charitable contributions that are not allowed as a deduction in the current year due to the adjusted gross income limitation.

(True/False)

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Question 45

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?

(Multiple Choice)

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Question 46

For the current tax year,David,a married taxpayer filing a joint return,reported the following: What is the maximum amount that David can deduct in the current year as investment interest expense?

(Multiple Choice)

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Question 47

To deduct interest paid with respect to indebtedness,the taxpayer must be legally liable for the debt.

(True/False)

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Question 48

Matthew purchases a new principal residence in the current year and pays points of $2,000 to obtain a mortgage loan.What is the proper tax treatment for the points paid?

(Multiple Choice)

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Question 49

All personal casualty losses incurred during the year are added together and only one $100 floor amount is used to reduce the casualty deduction.

(True/False)

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Question 50

Melvin owns his home and has a $200,000 mortgage related to his purchase of the residence.In the fall of the current year,he borrows $40,000 on credit cards for college costs for his two sons.The interest expense on the mortgage is $15,000 and the interest expense on the credit cards is $6,000.How much of the interest is deductible as an itemized deduction and why? If you were Melvin's accountant,what tax planning suggestion might you have made to him?

(Essay)

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Question 51

An employee may deduct the cost of welder's safety goggles used at work as a miscellaneous itemized deduction.

(True/False)

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Question 52

If an employee receives a reimbursement for employee business expenses,the amount of the reimbursement is always excluded from gross income and the expenses are deductions for adjusted gross income.

(True/False)

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Question 53

Expenses of education to improve or maintain existing skills are deductible as a miscellaneous itemized deduction even if the education incidentally leads to qualification in a new job or business.

(True/False)

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Question 54

The cost of an appraisal of a painting may be deducted,subject to the 2% of adjusted gross income limitation,if the purpose of the appraisal is related to the preparation of an income tax return.

(True/False)

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Question 55

State sales taxes can be deducted in lieu of state income taxes.

(True/False)

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Question 56

Frank was so entertained by the Paris Symphony on his visit to France that he mailed them a donation of $100 to support their organization as soon as he returned home to Seattle.Frank may deduct the charitable contribution to the Paris Symphony on his U.S.tax return.

(True/False)

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Question 57

Damage resulting from which of the following would probably not give rise to a casualty loss deduction?

(Multiple Choice)

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Question 58

Ronald donates publicly traded Microsystems stock with a basis of $2,000 and a fair market value of $20,000 to the local library,which is considered a public charity.Ronald has $30,000 of adjusted gross income,and he purchased the stock 15 years ago.How is this contribution treated on Ronald's tax return?

(Essay)

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Question 59

Mary Lou took an $8,000 distribution from her educational savings account and used $6,000 to pay for qualified higher education expenses.The remaining balance of $2,000 was used to purchase clothes.On the date of the distribution,her educational savings account had a $25,000 balance including the $20,000 she had contributed.How much of the $8,000 distribution is tax-free?

(Multiple Choice)

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Question 60

Showing 41 - 60 of 142

Diane's engagement ring is stolen in the current year.It cost $1,500 and was worth $1,500.Diane makes $30,000 as an office manager and has no other income.What is her casualty loss deduction?

Which one of the following is not considered a casualty or theft loss for tax purposes?

Agnes is retired and has only a $12,000 annual pension as income.In 2017,Agnes' aunt dies and leaves her land worth $1.2 million.Agnes sees no need for the land and donates it immediately to a qualified public charity.Agnes may deduct a $1.2 million charitable contribution on her 2017 tax return.

Individual taxpayers may carry forward indefinitely charitable contributions that are not allowed as a deduction in the current year due to the adjusted gross income limitation.

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?

For the current tax year,David,a married taxpayer filing a joint return,reported the following: What is the maximum amount that David can deduct in the current year as investment interest expense?

To deduct interest paid with respect to indebtedness,the taxpayer must be legally liable for the debt.

Matthew purchases a new principal residence in the current year and pays points of $2,000 to obtain a mortgage loan.What is the proper tax treatment for the points paid?

All personal casualty losses incurred during the year are added together and only one $100 floor amount is used to reduce the casualty deduction.

An employee may deduct the cost of welder's safety goggles used at work as a miscellaneous itemized deduction.

If an employee receives a reimbursement for employee business expenses,the amount of the reimbursement is always excluded from gross income and the expenses are deductions for adjusted gross income.

Expenses of education to improve or maintain existing skills are deductible as a miscellaneous itemized deduction even if the education incidentally leads to qualification in a new job or business.

The cost of an appraisal of a painting may be deducted,subject to the 2% of adjusted gross income limitation,if the purpose of the appraisal is related to the preparation of an income tax return.

State sales taxes can be deducted in lieu of state income taxes.

Frank was so entertained by the Paris Symphony on his visit to France that he mailed them a donation of $100 to support their organization as soon as he returned home to Seattle.Frank may deduct the charitable contribution to the Paris Symphony on his U.S.tax return.

Damage resulting from which of the following would probably not give rise to a casualty loss deduction?

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

Diane's engagement ring is stolen in the current year.It cost $1,500 and was worth $1,500.Diane makes $30,000 as an office manager and has no other income.What is her casualty loss deduction?

Which one of the following is not considered a casualty or theft loss for tax purposes?

Agnes is retired and has only a $12,000 annual pension as income.In 2017,Agnes' aunt dies and leaves her land worth $1.2 million.Agnes sees no need for the land and donates it immediately to a qualified public charity.Agnes may deduct a $1.2 million charitable contribution on her 2017 tax return.

Individual taxpayers may carry forward indefinitely charitable contributions that are not allowed as a deduction in the current year due to the adjusted gross income limitation.

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?

For the current tax year,David,a married taxpayer filing a joint return,reported the following: What is the maximum amount that David can deduct in the current year as investment interest expense?

To deduct interest paid with respect to indebtedness,the taxpayer must be legally liable for the debt.

Matthew purchases a new principal residence in the current year and pays points of $2,000 to obtain a mortgage loan.What is the proper tax treatment for the points paid?

All personal casualty losses incurred during the year are added together and only one $100 floor amount is used to reduce the casualty deduction.

An employee may deduct the cost of welder's safety goggles used at work as a miscellaneous itemized deduction.

If an employee receives a reimbursement for employee business expenses,the amount of the reimbursement is always excluded from gross income and the expenses are deductions for adjusted gross income.

Expenses of education to improve or maintain existing skills are deductible as a miscellaneous itemized deduction even if the education incidentally leads to qualification in a new job or business.

The cost of an appraisal of a painting may be deducted,subject to the 2% of adjusted gross income limitation,if the purpose of the appraisal is related to the preparation of an income tax return. ​

State sales taxes can be deducted in lieu of state income taxes.

​Frank was so entertained by the Paris Symphony on his visit to France that he mailed them a donation of $100 to support their organization as soon as he returned home to Seattle.Frank may deduct the charitable contribution to the Paris Symphony on his U.S.tax return.

Damage resulting from which of the following would probably not give rise to a casualty loss deduction?

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

The cost of an appraisal of a painting may be deducted,subject to the 2% of adjusted gross income limitation,if the purpose of the appraisal is related to the preparation of an income tax return.

Frank was so entertained by the Paris Symphony on his visit to France that he mailed them a donation of $100 to support their organization as soon as he returned home to Seattle.Frank may deduct the charitable contribution to the Paris Symphony on his U.S.tax return.