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Exam 10: Deductions and Losses: Certain Itemized Deductions

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Question 51

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Tom paid $1,880 of medical expenses for his son,Ted.Ted is married to Ann and they file a joint return.Tom cannot include the $1,880 of expenses when calculating his medical expense deduction.

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B) False

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Question 52

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Freda,who has AGI of $100,000 in 2011,contributes stock in Tulip Corporation (a publicly traded corporation)to Central State University,a qualified charitable organization.The stock is worth $59,000,and Freda acquired it as an investment two years ago at a cost of $44,000.

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Question 53

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The phaseout of certain itemized deductions has been reinstated for years beginning in 2011.

Fees for automobile inspections,automobile titles and registration,bridge and highway tolls,parking meter deposits,and postage are not deductible if incurred for personal reasons,but they are deductible as deductions for AGI if incurred as a business expense by a self-employed taxpayer.

Eduardo was injured in a diving accident and is confined to a wheelchair.In order to be able to live alone,he has entrance ramps constructed at his residence.In addition,he has the doorways and halls widened and has extensive modifications made to the kitchen and bathrooms.Do the capital expenditures incurred to modify his home constitute a valid medical expense? If so,what portion of the expense is deductible?

John gave $1,000 to a family whose house was destroyed by fire.John may claim a charitable deduction of $1,000 on his tax return for the current year.

Gambling losses may be deducted to the extent of the taxpayer's gambling winnings.Such losses are not subject to the 2% floor for miscellaneous itemized deductions.

Matt,a calendar year taxpayer,pays $9,000 in medical expenses in 2011.He expects $4,000 of these expenses to be reimbursed by an insurance company in 2012.In determining his medical expense deduction for 2011,Matt must reduce his 2011 medical expenses by the amount of the reimbursement he expects in 2012.

Felix sells his personal residence to Julio on July 1,2011.He had paid $9,000 in real property taxes on March 1,2011,the due date for property taxes for 2011.Felix may deduct the portion of the taxes he paid for the period the property was owned by Julio.

Shirley pays FICA (employer's share)on the wages she pays her maid to clean and maintain Shirley's personal residence.The FICA payment is not deductible as an itemized deduction.

Central Bank has initiated an advertising campaign that encourages customers to take out home equity loans to pay for purchases of automobiles.Are there any tax advantages related to this type of borrowing? Explain.

Alan,a calendar year married taxpayer,files a joint return for 2011.Information for 2011 includes the following: Alan's allowable itemized deductions for 2011 are:

During 2011,Ellen paid the following taxes: Ellen sold her personal residence on May 30,2011,under an agreement in which the real estate taxes were not prorated between the buyer and the seller.What amount qualifies as a deduction from AGI for 2011 for Ellen?

Steven is single and has AGI of $275,300 in 2011.His potential itemized deductions for the year total $59,100 and consist of the following: What is the amount of itemized deductions Steven may claim?

Antonio sold his personal residence to Mina on July 1,2011.He had paid real property taxes on March 1,2011,the due date for property taxes for 2011.How will Antonio's payment affect his deduction for property taxes in 2011? Will Antonio's payment of the taxes have any effect on Mina's itemized deductions for 2011? What other tax or financial effects will Antonio's payment of the taxes have on either party?

Employee business expenses for travel qualify as itemized deductions subject to the 2% floor if they are not reimbursed.

In 2011,Roseann makes the following donations to qualified charitable organizations: The ABC stock and the inventory were given to Roseann's church,and the comic book collection was given to the United Way.Both donees promptly sold the property for the stated fair market value.Disregarding percentage limitations,Roseann's charitable contribution deduction for 2011 is:

During the current year,Vijay,a self-employed individual,paid the following amounts: What is the maximum amount Vijay can claim as taxes in itemizing deductions from AGI?

In Shelby County,the real property tax year is the calendar year.The real property tax becomes a personal liability of the owner of real property on January 1 in the current real property tax year,2011.The tax is payable on June 1,2011.On April 30,2011,Julio sells his house to Anita for $230,000.On June 1,2011,Anita pays the entire real estate tax of $7,300 for the year ending December 31,2011.How much of the property taxes may Julio deduct?

Jennifer,a calendar year taxpayer,made the following donations to qualified charitable organizations in 2011: The land had been held as an investment and was acquired 3 years ago.Shortly after receipt,the City of Columbus sold the land for $240,000.Jennifer's AGI is $400,000.The allowable charitable contribution deduction is: