Exam 5: Itemized Deductions and Other Incentives

The amount of a special assessment charged to residents for the installation of sidewalks on their street is not deductible on Schedule A as property taxes.

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

For 2017,Betsy and Bob,ages 62 and 68,respectively,are married taxpayers who file a joint tax return with AGI of $50,000.During the year they incurred the following expenses: In addition,their insurance company reimbursed them $3,100 for the above expenses. ​ Using the format below,calculate Betsy and Bob's deduction for medical and dental expenses for 2017. ​ ​

Jennie receives $12,000 (of which $2,000 is earnings)from a Qualified Tuition Program.She uses the funds to pay for new furniture for her apartment.What amount is taxable to Jennie?

Meade paid $5,000 of state income taxes in 2017.The total actual sales taxes paid during 2017 was $4,500,which did not include $3,000 for the sales taxes paid in 2017 on Meade's new boat.How should Meade treat the taxes paid in his 2017 tax return?

Kat owns a small bungalow which is destroyed in a fire.Kat is not insured for fire.The bungalow originally cost $22,000,but was worth $45,000 before the fire.Kat has $30,000 of adjusted gross income.How much can Kat claim as a casualty loss in her tax return? Explain.

​Foreign income taxes paid are deductible.

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 the current year,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 the current year?

Richie Rominey purchases a new $4.3 million qualified principal residence in Palo Alto,California using a mortgage loan of $3 million.Richie's mortgage interest deduction may be limited.

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

Shellie,a single individual,received her Bachelor's degree in 2016,and took a job with a salary of $45,000 per year.In 2017,she began paying interest on qualified education loans.She was able to pay $1,500 in 2017.Which of the following statements is correct?

Alicia is a single taxpayer with AGI of $338,400 and itemized deductions of $100,000 which are made up of $30,000 of mortgage interest,$30,000 of state income taxes and property taxes,and $40,000 of contributions to her temple.What is the amount of itemized deductions that Alicia may deduct on her 2017 income tax return after the phase-out for high-income taxpayers?

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

Margo has $2,200 withheld from her wages for state income taxes during 2017.In March of 2017,she paid $400 in additional taxes for her 2016 state tax return.Her state income tax liability for 2017 is $2,700 and she pays the additional $500 when she files her 2017 state tax return in April of 2018.What amount should Margo deduct as an itemized deduction for state income taxes on her 2017 federal income tax return,assuming she deducts state and local income taxes?

Peter is a plumber employed by a major contracting firm.During the current year,he paid the following miscellaneous expenses: If Peter were to itemize his deductions for the current year,what amount could he claim as miscellaneous itemized deductions (before applying the 2 percent of adjusted gross income limitation)?

Jean's employer has an accountable plan for reimbursing employee expenses.Jean is reimbursed for $1,500 of business travel and $500 for various business subscriptions and professional dues.The $2,000 reimbursement should be treated as follows: ​

Pat has a dependent daughter and files as head of household.She has AGI of $376,000.What percentage of the $4,050 personal exemption and $4,050 dependency exemption may she deduct on her 2017 income tax return?

Which of the following is true with respect to an education incentive?

During the current year,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 the current year as an itemized deduction for the taxes paid,assuming he deducts state and local income taxes?

​Brittany determined that she paid $450 in gasoline excise taxes during the year when she bought gas for her commute to and from work.Brittany's gas excise taxes are deductible as an itemized deduction.