Question 1

Roberto, age 50, has AGI of $110,000 for 2016. He has medical expenses of $13,200. How much of the medical expenses can Roberto deduct on his Schedule A for 2016?

Accepted Answer

A)  $0
B)  $4,950
C)  $11,000
D)  $13,200
E)  None of the above E

Question 2

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?

Accepted Answer

a. $0
b. $0

Question 3

Harvey itemized deductions on his 2015 income tax return. Harvey plans to itemize deductions again in 2016 and the following information is available regarding state and local income taxes: Assuming he elects to deduct state and local income taxes, the above information should be reported by Harvey in his 2016 tax return as:

Accepted Answer

A)  Itemized deduction for state and local income taxes of $2,500, and income from state and local tax refund of $200
B)  Itemized deduction for state and local income taxes of $2,300
C)  Itemized deduction for state and local income taxes of $2,800
D)  Itemized deduction for state and local income taxes of $2,800 and income from state and local tax refund of $500
E)  None of the above D

Question 4

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 2016 income tax return?

Accepted Answer

A)  0 percent
B)  74 percent
C)  26 percent
D)  37 percent
E)  ​100 percent

Question 5

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

The answer of Tom is employed by a large consulting...

Question 6

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.

Accepted Answer

A) True 
 B)False

Question 7

Taxpayers must itemize their deductions to be allowed a charitable contribution deduction.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Question 10

The cost of a chiropractor's services qualifies as a medical deduction.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)  Contributions to Qualified Tuition Programs (Section 529 plans)  are deductible.
B)  Contributions to education savings accounts (Coverdell ESAs)  are deductible.
C)  Tuition paid by a taxpayer earning $300,000 of income is deductible.
D)  Married taxpayers at any income level may contribute to a Qualified Tuition Program (Section 529 plan) .

Question 12

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

Accepted Answer

A)  Union dues
B)  Professional dues and subscriptions
C)  Job hunting expenses
D)  Investment expenses
E)  All of the above are miscellaneous deductions

Question 13

​Dr. Wheeler donates her time and services to Doctors with No Limits, a qualified charity. Dr. Wheeler can take a tax deduction for the $3,400 market value of her time donated.

Accepted Answer

A) True 
 B)False

Question 14

The 2016 standard mileage rate for taxpayer use of a personal auto for transportation for medical care is ​$.23 per mile.

Accepted Answer

A) True 
 B)False

Question 15

What income tax form does an employee use to report business expenses that are not reimbursed by an employer under an accountable plan?

Accepted Answer

A)  Form 2106, Employee Business Expenses
B)  No form, the expenses are not deductible by the employee
C)  Schedule D
D)  Schedule R
E)  Schedule C

Question 16

Sam operates a manufacturing company as a sole proprietorship. During the current year, the machinery used in the manufacturing process is totally destroyed by a fire in the building. The machinery had an adjusted basis of $16,000 and a fair market value of $11,000 on the date of the fire. The machinery was insured and Sam receives $10,000 from the insurance company. Sam does not replace the machinery. Assuming Sam has adjusted gross income of $60,000 for the current year, calculate the amount of Sam's casualty loss for the current year.

Accepted Answer

The answer of Sam operates a manufacturing company as a...

Question 17

For married taxpayers filing a joint return in 2016, at what AGI level does the phase-out limit for contributions to Qualified Tuition Programs (Section 529 plans) start?

Accepted Answer

A)  $150,500
B)  $188,150
C)  $225,750
D)  There is no phase-out limit on Qualified Tuition Program contributions.

Question 18

​For a taxpayer with adjusted gross income of $56,000, private mortgage insurance (PMI) is deductible in 2016.

Accepted Answer

A) True 
 B)False

Question 19

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?

Accepted Answer

The answer of Ronald donates publicly traded Microsystems stock with...

Question 20

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

Accepted Answer

A)  A taxpayer's residence is progressively destroyed by termites
B)  A taxpayer's residence is burned down during a wild fire.
C)  A taxpayer's car is destroyed by wild fire.
D)  A taxpayer's bicycle is vandalized by local teenagers.
E)  All of the above are casualty or theft losses.

Exam 5: Itemized Deductions and Other Incentives

Roberto, age 50, has AGI of $110,000 for 2016. He has medical expenses of $13,200. How much of the medical expenses can Roberto deduct on his Schedule A for 2016?

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?

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 2016 income tax return?

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 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.

Taxpayers must itemize their deductions to be allowed a charitable contribution deduction.

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

Which one of the following is not tax deductible?

The cost of a chiropractor's services qualifies as a medical deduction.

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

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

Dr. Wheeler donates her time and services to Doctors with No Limits, a qualified charity. Dr. Wheeler can take a tax deduction for the $3,400 market value of her time donated.

The 2016 standard mileage rate for taxpayer use of a personal auto for transportation for medical care is $.23 per mile.

What income tax form does an employee use to report business expenses that are not reimbursed by an employer under an accountable plan?

For married taxpayers filing a joint return in 2016, at what AGI level does the phase-out limit for contributions to Qualified Tuition Programs (Section 529 plans) start?

For a taxpayer with adjusted gross income of $56,000, private mortgage insurance (PMI) is deductible in 2016.

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

Exam 5: Itemized Deductions and Other Incentives

Roberto, age 50, has AGI of $110,000 for 2016. He has medical expenses of $13,200. How much of the medical expenses can Roberto deduct on his Schedule A for 2016?

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?

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 2016 income tax return?

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 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.

Taxpayers must itemize their deductions to be allowed a charitable contribution deduction.

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

Which one of the following is not tax deductible?

The cost of a chiropractor's services qualifies as a medical deduction.

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

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

​Dr. Wheeler donates her time and services to Doctors with No Limits, a qualified charity. Dr. Wheeler can take a tax deduction for the $3,400 market value of her time donated.

The 2016 standard mileage rate for taxpayer use of a personal auto for transportation for medical care is ​$.23 per mile.

What income tax form does an employee use to report business expenses that are not reimbursed by an employer under an accountable plan?

For married taxpayers filing a joint return in 2016, at what AGI level does the phase-out limit for contributions to Qualified Tuition Programs (Section 529 plans) start?

​For a taxpayer with adjusted gross income of $56,000, private mortgage insurance (PMI) is deductible in 2016.

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

Dr. Wheeler donates her time and services to Doctors with No Limits, a qualified charity. Dr. Wheeler can take a tax deduction for the $3,400 market value of her time donated.

The 2016 standard mileage rate for taxpayer use of a personal auto for transportation for medical care is $.23 per mile.

For a taxpayer with adjusted gross income of $56,000, private mortgage insurance (PMI) is deductible in 2016.