Reference no: EM13825005

Generally, deductions for adjusted gross income on an individual's tax return include all the following types of expenses except those

incurred in the production of rent income.
incurred in a trade or business.
incurred in the production of royalty income.
incurred in gambling activities.

During the current year, Deborah Baronne, a single individual, paid the following amounts:

Federal income tax .............................................................................. $10,000
State income tax................................................................ $4,000
Real estate taxes on land . .............................................. $1,400
State sales taxes....................................................................................... $2,000

How much can Deborah deduct in taxes as itemized deductions?

If a taxpayer has AGI of $35,000, how much of the following expense can he apply towards his itemized deductions?

Medical Expenses $3,500
Tax Preperation Fees 500
Unrembursed Employee Expenses 2,000
Charitible Contributions 1,000

Erin's records reflect the following information:

Paid $5,500 to a church of which $3,000 was contributed to the church and $2,500 was paid to enroll her child in its school.
Paid $200 dues to a fraternal organization.
Donated stock having a fair market value of $1,500 to a qualified charitable organization. She purchased the stock 2 years earlier for $3,000.
Paid $1,600 cash to qualified public charitable organizations.

Erin's adjusted gross income for this year was $20,000. What is the amount of her charitable contribution deduction for the year?
$6,300
$7,800
$7,600
$6,100

All or part of a refund this year of state income taxes paid last year must be included as income this year even if the taxpayer took the standard deduction last year.
True
False

A personal property tax based on the weight of the property is deductible.
True
False

The following taxes are deductible as itemized deductions with the exception of
local personal property taxes.
foreign real property taxes.
state income taxes.
federal income taxes.

Medical expenses are deductible as a from AGI deduction to the extent that they exceed 7.5 percent of the taxpayer's AGI.
True
False

Van pays the following medical expenses this year
-$500 for doctor bills for Van's son who is claimed as a dependent
by Van's former spouse.
-$300 for Van's eyeglasses.
-$900 for Van's dental work.
-$800 for Van's face lift. Van, a newscaster, is worried about the wrinkles around his eyes.

How much can Van include on his return as qualified medical expenses before limitation?
$1,700
$1,400
$1,200
$2,500

Charitable contributions made to individuals are deductible if the individuals can show extreme financial need.
True
False

Points paid in connection with the purchase or improvement of a principal residence may be deducted in the year paid.
True
False

On Form 1040, deductions for adjusted gross income include the amounts paid for all of the followingexcept
student loan interest.
moving expenses.
home mortgage interest.
alimony.

Self-employed individuals may claim, as a deduction for adjusted gross income, 50 percent of their
self-employment tax.
health insurance premiums.
No answer text provided.
disability insurance premiums.
traditional IRA contributions.

Deductions for AGI may be located
on Schedule E as a deduction.
All of the above are true.
on the front page of Form 1040.
on Schedule C as a deduction.

Which of the following expenditures is tax deductible?
expenses that are illegal or in violation of public policy
expenses related to a trade or business
expenses related to tax-exempt income
capital expenditures

All of the following are deductible as medical expenses except
payments for a vision exam and contact lenses.
cosmetic surgery necessary to correct a deformity arising from a congenital abnormality.
payments to a hospital for laboratory fees and X-rays for diagnosis of a medical problem.
vitamins and health foods that improve a taxpayer's general health.

Leo spent $6,600 to construct an entrance ramp and to widen doorways in his personal residence to make the home accessible for his wife, who is disabled and confined to a wheelchair. The $6,600 expenditure increased the value of the residence by $2,000. How much of the $6,600 is a deductible medical expense?
$0
$4,000
$6,600
$2,000

The following taxes are deductible as itemized deductions with the exception of
local personal property taxes.
foreign real property taxes.
state income taxes.
federal income taxes.

Doug pays a county personal property tax on his automobile of $1,500. The $1,500 includes $800 based on the weight of the car and $700 based on the value of the car. How much of the tax can Doug deduct on his tax return?
$0
$1,500
$800
$700

In February of the current year (a non-leap year), Ken and Kelsey received their property tax statement for last calendar-year taxes of $1,600, which they paid to the taxing authority on March 1 of the current year. They had purchased their home on May 1 last year. What amount of property tax on this statement may they claim as an itemized deduction this year?
$1,600
$0
$1,069
$1,074