Exam 5: Itemized Deductions and Other Incentives

The expense of a review course for a state real estate agent's exam is deductible as a miscellaneous itemized deduction by a taxpayer attempting to become an agent.

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

Harris had adjusted gross income in the current year of $126,000.During the year his personal summer home was almost completely destroyed by a cyclone.Pertinent data with respect to the home follows: Harris was partially insured for his loss and in the current year he received a $113,000 insurance settlement.What is Harris' allowable casualty loss deduction for the current year?

Dongkuk uses his holiday bonus to pay his January 2018 mortgage payment in December 2017.The payment would normally be due January 31st.Dongkuk may deduct the interest paid as part of the early mortgage payment.

Phillip,a single parent,would like to contribute $1,800 to an educational savings account for his 10-year-old son.His AGI is $98,000.Calculate the amount of the contribution he can make.

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.

Mortgage interest on a taxpayer's personal residence is not deductible on Schedule A.

Which of the following is not deductible as a medical expense on Schedule A?

Sally and Jim purchased their personal residence in Santa Barbara 20 years ago for $150,000.The home has a fair market value today of $1,000,000.For the current year,they have a $10,000 first mortgage on their home,on which they paid $1,000 in interest.They also have a home equity loan secured by their home with a balance throughout the year of $110,000.The proceeds of the home equity loan were used to send their two children to college.They paid interest on the home equity loan of $5,500 for the year. ​ Calculate the amount of their deduction for interest paid on qualified residence acquisition debt and qualified home equity debt for the current year. ​ Qualified residence acquisition debt interest: ​ Qualified home equity debt interest:

If personal property is completely destroyed,the casualty loss deduction is still reduced by a floor amount.

Taxpayers are permitted an itemized deduction for the lesser of state income taxes paid or state sales taxes paid.

Geoffrey receives $20,000 from a qualified tuition program created by his grandmother.The program had accumulated $6,000 in earnings.He used the full $20,000 to pay for qualified higher education expenses.Calculate the amount of earnings subject to taxation.

Catherine is a CPA employed by a large accounting firm in San Francisco.In the current year,she paid the following amounts: How much may she deduct on Schedule A as a miscellaneous deduction,before considering the 2 percent of adjusted gross income limitation?

Harvey itemized deductions on his 2016 income tax return.Harvey plans to itemize deductions again in 2017 and the following information is available regarding state and local income taxes: Assuming he deducts state and local income taxes,the above information should be reported by Harvey in his 2017 tax return as:

An accountable expense reimbursement plan:

For 2017,Eugene and Linda had adjusted gross income of $30,000.Additional information for 2017 is as follows: What is the maximum amount they can deduct for charitable contributions in 2017?

Don donates his old car to a qualified charity.The charity then sells the car at an auction.Describe the tax treatment of the donation.

​Lodging for a trip associated with medical care associated with a licensed hospital is not deductible.

Gwen has written acknowledgments for each of the following charitable contributions during the current year: What is Gwen's charitable contribution deduction for the current year?

Charu is charged $70 by the state she lives in related to vehicle registration based on the weight of her personal auto. Charu can deduct the $70 as an itemized deduction.