Exam 5: Itemized Deductions and Other Incentives

Glenda heard from a friend that prescriptions drugs were considerably cheaper overseas and purchases her regular prescription over the internet from a foreign company for $500.Though technically illegal,Glenda saves quite a bit and is pretty sure "everyone is doing it." Glenda can include the $500 cost of the prescription as a deductible medical expense.

(True/False)

4.8/5

(84)

Question 61

If business property is completely destroyed,the casualty or theft loss is the lesser of the decrease in market value or the adjusted basis of the property.

(True/False)

4.7/5

(80)

Question 62

Stewart had adjusted gross income of $22,000 in 2017.During the year,he made the following contributions to qualified charities: - $7,000 cash - 1,000 shares of Able Corporation common stock,acquired in 1980 (cost and fair market value of $5,000) Considering the charitable contribution deduction limitation,what amount can Stewart claim as a deduction for charitable contributions in 2017?

(Multiple Choice)

4.9/5

(88)

Question 63

In 2017,state income taxes or state and local sales taxes,whichever is larger,may be deducted as an itemized deduction on Schedule A.

(True/False)

4.8/5

(80)

Question 64

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

(Multiple Choice)

4.7/5

(81)

Question 65

Charles,a corporate executive,incurred business related,unreimbursed expenses in the current year as follows: Assuming that Charles itemizes his deductions,how much of these expenses should he deduct on his current year Schedule A,before considering the 2 percent of adjusted gross income limitation?

(Multiple Choice)

4.8/5

(89)

Question 66

Christine saw a television advertisement asking for donations of used vehicles to a charitable foundation and decided to donate her old car.Which of the following statements is correct?

(Multiple Choice)

4.9/5

(77)

Question 67

All taxpayers may deduct up to $4,000 of higher education tuition expenses.

(True/False)

4.7/5

(78)

Question 68

For a individual taxpayer with AGI of $65,000,private mortgage insurance (PMI)is deductible in 2017.

(True/False)

4.9/5

(80)

Question 69

April and Wilson are married and file a joint tax return.Wilson is a police officer,and in the current tax year he spends $400 on uniforms and $160 for dry cleaning the uniforms.April is in the National Guard and military regulations restrict her from wearing her uniforms when she is off duty.The cost of uniforms for the year was $220 and the cost of dry cleaning them amounted to $80.April was granted a uniform allowance of $180 for the year.She also purchased a pair of standard black shoes to wear while on duty that cost $75.How much may they deduct on Schedule A for special clothing and uniforms,before considering the 2 percent of adjusted gross income limitation?

(Multiple Choice)

4.8/5

(79)

Question 70

Which of the following types of interest are not likely to be deductible in 2017?

(Multiple Choice)

4.8/5

(80)

Question 71

The 2017 standard mileage rate for taxpayer use of a personal auto for transportation for medical care is $.19 per mile.

(True/False)

4.9/5

(82)

Question 72

Which of the following is not an itemized deduction?

(Multiple Choice)

4.8/5

(74)

Question 73

Toni and Beyonze are married and file jointly.During 2017,they paid tuition for their daughter's college in the amount of $23,000.If their AGI was $142,000,what is the amount of tuition deduction they are eligible for?

(Multiple Choice)

4.9/5

(93)

Question 74

A house purchased for $25,000 with an appreciated value of $160,000 was completely destroyed.The casualty loss was limited to the taxpayer's basis of $25,000.Why shouldn't the full $160,000 be allowed as a loss?

(Essay)

4.9/5

(88)

Question 75

Charlie is a single taxpayer with income of $107,000 which includes $22,500 of interest income.Contributions to educational savings accounts are phased out between $95,000 and $110,000.What is the maximum contribution Charlie can make to an educational savings account?

(Multiple Choice)

4.9/5

(75)

Question 76

Which of the following types of interest is not deductible?

(Multiple Choice)

4.9/5

(71)

Question 77

Perry Mayson,a single taxpayer,graduated law school last year with quite a bit of qualified student loan debt and ends up paying $4,300 in interest on the loan in the current tax year.Fortunately,Perry is well compensated and earns adjusted gross income of $85,000 during the current year.Perry may deduct his student loan interest in the current year.

(True/False)

4.9/5

(74)

Question 78

Rob's employer has an accountable plan for employee expenses.His employer reimburses him for $1,000 of professional dues and subscriptions. a.How much of the reimbursement must Rob include in income? b.How much can Rob claim as a miscellaneous itemized deduction subject to the 2 percent floor?

(Essay)

4.8/5

(73)

Question 79

Alice purchases a new personal auto and finances the purchase through the dealer.The interest of $760 she pays on the car loan during the current tax year is deductible.

(True/False)

4.8/5

(73)

Question 80

Showing 61 - 80 of 142

If business property is completely destroyed,the casualty or theft loss is the lesser of the decrease in market value or the adjusted basis of the property.

In 2017,state income taxes or state and local sales taxes,whichever is larger,may be deducted as an itemized deduction on Schedule A.

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

Charles,a corporate executive,incurred business related,unreimbursed expenses in the current year as follows: Assuming that Charles itemizes his deductions,how much of these expenses should he deduct on his current year Schedule A,before considering the 2 percent of adjusted gross income limitation?

Christine saw a television advertisement asking for donations of used vehicles to a charitable foundation and decided to donate her old car.Which of the following statements is correct?

All taxpayers may deduct up to $4,000 of higher education tuition expenses.

For a individual taxpayer with AGI of $65,000,private mortgage insurance (PMI)is deductible in 2017.

Which of the following types of interest are not likely to be deductible in 2017?

The 2017 standard mileage rate for taxpayer use of a personal auto for transportation for medical care is $.19 per mile.

Which of the following is not an itemized deduction?

Toni and Beyonze are married and file jointly.During 2017,they paid tuition for their daughter's college in the amount of $23,000.If their AGI was $142,000,what is the amount of tuition deduction they are eligible for?

A house purchased for $25,000 with an appreciated value of $160,000 was completely destroyed.The casualty loss was limited to the taxpayer's basis of $25,000.Why shouldn't the full $160,000 be allowed as a loss?

Charlie is a single taxpayer with income of $107,000 which includes $22,500 of interest income.Contributions to educational savings accounts are phased out between $95,000 and $110,000.What is the maximum contribution Charlie can make to an educational savings account?

Which of the following types of interest is not deductible?

Rob's employer has an accountable plan for employee expenses.His employer reimburses him for $1,000 of professional dues and subscriptions. a.How much of the reimbursement must Rob include in income? b.How much can Rob claim as a miscellaneous itemized deduction subject to the 2 percent floor?

Alice purchases a new personal auto and finances the purchase through the dealer.The interest of $760 she pays on the car loan during the current tax year is deductible.

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

​If business property is completely destroyed,the casualty or theft loss is the lesser of the decrease in market value or the adjusted basis of the property.

In 2017,state income taxes or state and local sales taxes,whichever is larger,may be deducted as an itemized deduction on Schedule A.

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

Christine saw a television advertisement asking for donations of used vehicles to a charitable foundation and decided to donate her old car.Which of the following statements is correct?

All taxpayers may deduct up to $4,000 of higher education tuition expenses.

For a individual taxpayer with AGI of $65,000,private mortgage insurance (PMI)is deductible in 2017.

Which of the following types of interest are not likely to be deductible in 2017?

The 2017 standard mileage rate for taxpayer use of a personal auto for transportation for medical care is $.19 per mile.

Which of the following is not an itemized deduction?

Toni and Beyonze are married and file jointly.During 2017,they paid tuition for their daughter's college in the amount of $23,000.If their AGI was $142,000,what is the amount of tuition deduction they are eligible for?

A house purchased for $25,000 with an appreciated value of $160,000 was completely destroyed.The casualty loss was limited to the taxpayer's basis of $25,000.Why shouldn't the full $160,000 be allowed as a loss?

Charlie is a single taxpayer with income of $107,000 which includes $22,500 of interest income.Contributions to educational savings accounts are phased out between $95,000 and $110,000.What is the maximum contribution Charlie can make to an educational savings account?

Which of the following types of interest is not deductible?

Rob's employer has an accountable plan for employee expenses.His employer reimburses him for $1,000 of professional dues and subscriptions. a.How much of the reimbursement must Rob include in income? b.How much can Rob claim as a miscellaneous itemized deduction subject to the 2 percent floor?

​Alice purchases a new personal auto and finances the purchase through the dealer.The interest of $760 she pays on the car loan during the current tax year is deductible.

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

If business property is completely destroyed,the casualty or theft loss is the lesser of the decrease in market value or the adjusted basis of the property.

Alice purchases a new personal auto and finances the purchase through the dealer.The interest of $760 she pays on the car loan during the current tax year is deductible.