Reference no: EM132494785

Question 1: Charitable contributions of the following types are deductible on Schedule A except:

A. cash contributions to a church.
B. contributions paid by credit card.
C. contributions of food and clothing to a needy family.
D. transportation expenses at $.14 per mile for charity.
E. all of the above are charitable contributions deductible on Schedule A.

Question 2: Itemized deductions reported on Schedule A may include all of the following except:

A. Interest paid on the mortgage for their vacation home.
B. Interest paid on a loan where the proceeds were used to buy stock in a corporation.
C. Use of one's personal car to go to the doctor.
D. Interest paid on an $80,000 home equity loan where the proceeds were used to improve a qualified residence.
E. All of the above are itemized deductions reported on Schedule A.

Question 3: Deductible medical expenses include all of the following except:

A. over-the-counter drugs prescribed by a physician.
B. travel expenses incurred to seek medical treatment.
C. the cost and care of a guide dog for a blind person.
D. cosmetic surgery to correct a medical condition.
E. the cost to install ramps at the taxpayer's home to allow access to the home by the taxpayer's handicapped son.

Question 5: Expenses not allowed as deductible medical expenses include:

A. tuition paid by the parents of a disabled child to send their child to a special school.
B. the cost of braces.
C. premiums on life insurance.
D. cost of a wheelchair.
E. all of the above are deductible medical expenses.

Question 6: Olin owns a main home and two vacation homes. His home mortgage interest on these three homes is $16,950 (main), $20,900 (vacation), and $22,680 (vacation), respectively. How much of the $60,530 can Olin deduct on Schedule A?

A. $60,530
B. $16,950
C. $39,630
D. $37,850
E. $43,580

Question 7: In 2019, Sam drove his 12-year-old son 200 miles to see a medical specialist. Sam and his son spent one night at a local hotel, which cost $125. The amount that Sam can deduct for medical expenses is:

A. $140.
B. $159.
C. $207.
D. $232.
E. $84.

Question 8: A couple owns a main home and two vacation homes. They hold mortgages on the two vacation homes and paid home mortgage interest of $9,200 and $6,800, respectively. The couple does not have a mortgage on their main home. The couple's home mortgage interest deduction on Schedule A is:

A. $9,200.
B. $6,800.
C. $16,000.
D. $0.
E. None of the above.

Question 9: The Starks own a home in New York. They paid $1.2 million for the home several years ago. They originally took out a $1 million mortgage on the home. In the current year, the Starks refinanced their home at a time when the home was worth $2 million and the outstanding mortgage balance was $700,000. Their new mortgage is for $1.3 million. After the refinancing, the Starks's acquisition debt is:

A. $1.2 million.
B. $700,000.
C. $1.3 million.
D. $1 million.
E. $800,000.

Question 10: An individual donates artwork to San Francisco General Hospital. This was the only charitable contribution the taxpayer makes during the year. The artwork was purchased several years ago for $50,000; it is worth $140,000 at the time of the donation. The taxpayer's AGI is $160,000. Which of the following could be an accurate statement regarding the taxpayer's charitable deduction for the artwork?

A. The taxpayer deducts $80,000 in the current year and carries over $60,000 to the next year.
B. The taxpayer deducts $48,000 in the current year and carries over $2,000 to the next year.
C. The taxpayer deducts $48,000 in the current year and carries over $92,000 to the next year.
D. The taxpayer deducts $50,000 in the current year and carries over $0 to the next year.
E. None of the above statements could be accurate with respect to the taxpayer's charitable contribution deduction.

Question 11: The Martins file a joint return. Their AGI is $375,800. The Martins report the following amounts on Schedule A: home mortgage interest, $12,920; real estate taxes, $5,100; and $7,000 of cash gifts to qualified charities. The amount the Martins will deduct from AGI for their itemized deductions is:

A. $23,160.
B. $13.746.
C. $18,584.
D. $25,020.
E. $21,491.