Question 1

Taxpayers filing single and taxpayers filing married separate have the same basic standard deduction amount.

Accepted Answer

A) True 
 B)False

Question 2

Claire donated 200 publicly-traded shares of stock (held for 5 years) to her father's nonoperating private foundation this year. The stock was worth $15,000 but Claire's basis was only $4,000. Determine the maximum amount of charitable deduction for the donation if Claire's AGI is $60,000 this year.

Accepted Answer

$12,000
The stock is long-term capital g...

Question 3

Jim was in an auto accident this year. Jim paid $2,450 to repair his personal-use car after the accident and his insurance only reimbursed him $400. Jim bought his car several years ago for $1,500. What is the amount of casualty loss from this accident before Jim applies any casualty loss floor limitations?

Accepted Answer

A)   $2,450.
B)   $1,100.
C)   $1,500.
D)   $2,050.
E)   None of the choices are correct.F) C) and D)
G) B) and E)

Question 4

Ned is a head of household with a dependent son, Todd, who is a full-time student. This yea5r7N)  ed made the following expenditures related to Todd's support:  What amount can Ned include in his itemized deductions?

Accepted Answer

A)   $2,050 included in Ned's miscellaneous itemized deductions.
B)   $950 included in Ned's miscellaneous itemized deductions.
C)   $600 included in Ned's medical expenses.
D)   $1,700 included in Ned's miscellaneous itemized deductions.
E)   None of the choices are correct.F) A) and C)
G) A) and B)

Question 5

Mason paid $4,100 of interest on a loan that paid tuition for him to attend a privateuniversity this year. How much of this payment can Mason deduct as interest expense on an educational loan if he files single and reports modified AGI of $90,000?

Accepted Answer

A)   $2,000.
B)   $2,667.
C)   $4,100.
D)   $4,000.
E)   None of the choices are correct.F) B) and D)
G) C) and E)

Question 6

Which of the following taxes will not qualify as an itemized deduction?

Accepted Answer

A)   real estate taxes on a residence.
B)   gasoline taxes on personal travel.
C)   state, local, and foreign income taxes.
D)   personal property taxes assessed on the value of specific property.
E)   None of the choices qualify as an itemized deduction.F) A) and D)
G) A) and C)

Question 7

Which of the following is a true statement?

Accepted Answer

A)   To satisfy the distance test, the distance from the taxpayer's old residence to the new place of work must be at least 50 miles more than the distance from the oldResidence to the old place of work.
B)   To satisfy the business test, the taxpayer must be employed full-time for 45 of the first 52 weeks after the move.
C)   The moving expense deduction is restricted to expenses associated with moving personal possessions to the new residence.
D)   Individuals qualify for the moving expense deduction only if they change employers.
E)   All of the choices are true.F) All of the above
G) C) and D)

Question 8

Self-employed taxpayers can choose between claiming a deduction or a credit for the employer portion of self-employment taxes paid.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following itemized deductions is not subject to the itemized deduction phase-out?

Accepted Answer

A)   state income tax.
B)   gambling losses.
C)   charitable contributions.
D)   mortgage interest.
E)   All of the choices are subject to the itemized deduction phase-out.F) C) and D)
G) C) and E)

Question 10

The deduction for investment interest in excess of the net investment income carries forward to the subsequent year.

Accepted Answer

A) True 
 B)False

Question 11

Rochelle, a single taxpayer (age 47), has an AGI of $275,200. This year, she paid medical expenses of $30,000, state income taxes of $4,000, mortgage interest of $10,600, and charitable contributions of $6,000. What would be the amount of her total itemized deductions that she may claim on her tax return?

Accepted Answer

Rochelle's itemized deductions for the y...

Question 12

Madeoff donated stock (capital gain property)  to a public charity. He purchased the stock3 years ago for $100,000, and on the date of the gift, it had a fair market value of$200,000. What is his maximum charitable contribution deduction for the year related to this stock if his AGI is $500,000 (before considering the itemized deduction phase-out) ?

Accepted Answer

A)   $200,000.
B)   $250,000.
C)   $150,000.
D)   $100,000.
E)   None of the choices are correct.F) B) and D)
G) A) and D)

Question 13

The definition of qualifying expenses is more restrictive for the qualified educational expense deduction than it is for the education loan interest expense deduction.

Accepted Answer

A) True 
 B)False

Question 14

Glenn is an accountant who races stock cars as a hobby. This year Glenn was paid asalary of $80,000 from his employer and won $2,000 in various races. What is the effect of the racing activities on Glenn's taxable income if Glenn has also incurred $4,200 of hobby expenses this year? Assume that Glenn itemizes his deductions but has no other miscellaneous itemized deductions.

Accepted Answer

A)   decrease in taxable income of $2,200.
B)   no change in taxable income.
C)   increase in taxable income of $1,640.
D)   increase in taxable income of $2,000.
E)   decrease in taxable income of $560.F) B) and E)
G) A) and D)

Question 15

To qualify as a charitable deduction the donation must be made by cash or by check.

Accepted Answer

A) True 
 B)False

Question 16

Larry recorded the following donations this year:$500 cash to a family in need$2,400 to a church$500 cash to a political campaignTo the Salvation Army household items that originally cost $1,200 but are worth $300.What is Larry's maximum allowable charitable contribution if his AGI is $60,000?

Accepted Answer

A)   $1,000.
B)   $2,900.
C)   $4,600.
D)   $2,700.
E)   None of the choices are correct.F) B) and E)
G) A) and B)

Question 17

The deduction for medical expenses is limited to the amount of unreimbursed qualifying medical expenses paid during the year reduced by two percent of the taxpayer's AGI.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is a true statement?

Accepted Answer

A)   For purposes of the deduction for educational interest, expenses do not include expenses for room, board and travel.
B)   For purposes of the deduction for educational interest, qualified education expenses are those paid for the education of the taxpayer, the taxpayer's spouse, or a taxpayer's dependent.
C)   A penalty paid for prematurely withdrawing a certificate of deposit or similar deposit is deductible as an investment expense.
D)   The maximum deduction for interest expense on qualified education loans is $6,000.
E)   All of the choices are false.F) C) and D)
G) B) and C)

Question 19

Lewis is an unmarried law student at State University, a qualified educational institution.Last year Lewis borrowed $30,000 and used the proceeds to pay his university tuition. This year Lewis paid $1,500 of interest on the loan. Which of the following is a true statement if Lewis reports $40,000 of salary and no other items of income or expense?

Accepted Answer

A)   Lewis can only deduct $1,000 of the interest on his student loan for AGI.
B)   Lewis can only deduct $1,000 of the interest on his student loan as an itemized deduction.
C)   Lewis can deduct all the interest on his student loan as an itemized deduction.
D)   Lewis can deduct all the interest on his student loan for AGI.
E)   All of the choices are false.F) C) and D)
G) B) and D)

Question 20

Taxpayers are allowed to deduct mortgage interest on up to $1,000,000 of acquisition debt for their qualified residence and on up to $500,000 of home-equity debt.

Accepted Answer

A) True 
 B)False

Exam 6: Individual Deductions

The definition of qualifying expenses is more restrictive for the qualified educational expense deduction than it is for the education loan interest expense deduction.

Correct Answer
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Correct Answer
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Rochelle's itemized deductions for the y...
View Answer

Which of the following taxes will not qualify as an itemized deduction?

Correct Answer
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Which of the following is a true statement?

Correct Answer
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Taxpayers are allowed to deduct mortgage interest on up to $1,000,000 of acquisition debt for their qualified residence and on up to $500,000 of home-equity debt.

Correct Answer
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Claire donated 200 publicly-traded shares of stock (held for 5 years) to her father's nonoperating private foundation this year. The stock was worth $15,000 but Claire's basis was only $4,000. Determine the maximum amount of charitable deduction for the donation if Claire's AGI is $60,000 this year.

Correct Answer
verified
$12,000
The stock is long-term capital g...
View Answer

Correct Answer
verified

The deduction for medical expenses is limited to the amount of unreimbursed qualifying medical expenses paid during the year reduced by two percent of the taxpayer's AGI.

Correct Answer
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Larry recorded the following donations this year:$500 cash to a family in need$2,400 to a church$500 cash to a political campaignTo the Salvation Army household items that originally cost $1,200 but are worth $300.What is Larry's maximum allowable charitable contribution if his AGI is $60,000?

Correct Answer
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Correct Answer
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Correct Answer
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Self-employed taxpayers can choose between claiming a deduction or a credit for the employer portion of self-employment taxes paid.

Correct Answer
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Mason paid $4,100 of interest on a loan that paid tuition for him to attend a privateuniversity this year. How much of this payment can Mason deduct as interest expense on an educational loan if he files single and reports modified AGI of $90,000?

Correct Answer
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The deduction for investment interest in excess of the net investment income carries forward to the subsequent year.

Correct Answer
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Correct Answer
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Which of the following itemized deductions is not subject to the itemized deduction phase-out?

Correct Answer
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Which of the following is a true statement?

Correct Answer
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Taxpayers filing single and taxpayers filing married separate have the same basic standard deduction amount.

Correct Answer
verified

To qualify as a charitable deduction the donation must be made by cash or by check.

Correct Answer
verified

Ned is a head of household with a dependent son, Todd, who is a full-time student. This yea5r7N) ed made the following expenditures related to Todd's support: What amount can Ned include in his itemized deductions?

Correct Answer
verified

Exam 6: Individual Deductions

The definition of qualifying expenses is more restrictive for the qualified educational expense deduction than it is for the education loan interest expense deduction.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedRochelle's itemized deductions for the y...View AnswerShow Answer

Which of the following taxes will not qualify as an itemized deduction?

Correct AnswerverifiedShow Answer

Which of the following is a true statement?

Correct AnswerverifiedShow Answer

Taxpayers are allowed to deduct mortgage interest on up to $1,000,000 of acquisition debt for their qualified residence and on up to $500,000 of home-equity debt.

Correct AnswerverifiedShow Answer

Correct Answerverified$12,000The stock is long-term capital g...View AnswerShow Answer

Correct AnswerverifiedShow Answer

The deduction for medical expenses is limited to the amount of unreimbursed qualifying medical expenses paid during the year reduced by two percent of the taxpayer's AGI.

Correct AnswerverifiedShow Answer

Larry recorded the following donations this year:$500 cash to a family in need$2,400 to a church$500 cash to a political campaignTo the Salvation Army household items that originally cost $1,200 but are worth $300.What is Larry's maximum allowable charitable contribution if his AGI is $60,000?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Self-employed taxpayers can choose between claiming a deduction or a credit for the employer portion of self-employment taxes paid.

Correct AnswerverifiedShow Answer

Mason paid $4,100 of interest on a loan that paid tuition for him to attend a privateuniversity this year. How much of this payment can Mason deduct as interest expense on an educational loan if he files single and reports modified AGI of $90,000?

Correct AnswerverifiedShow Answer

The deduction for investment interest in excess of the net investment income carries forward to the subsequent year.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following itemized deductions is not subject to the itemized deduction phase-out?

Correct AnswerverifiedShow Answer

Which of the following is a true statement?

Correct AnswerverifiedShow Answer

Taxpayers filing single and taxpayers filing married separate have the same basic standard deduction amount.

Correct AnswerverifiedShow Answer

To qualify as a charitable deduction the donation must be made by cash or by check.

Correct AnswerverifiedShow Answer

Ned is a head of household with a dependent son, Todd, who is a full-time student. This yea5r7N) ed made the following expenditures related to Todd's support: What amount can Ned include in his itemized deductions?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Rochelle's itemized deductions for the y...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
$12,000
The stock is long-term capital g...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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