ACCOUNTING

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.

Flag this QuestionQuestion 25ptsSkip to question text.

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?

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Flag this QuestionQuestion 35ptsSkip to question text.

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

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Flag this QuestionQuestion 44ptsSkip to question text.

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

Flag this QuestionQuestion 52ptsAll 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

Flag this QuestionQuestion 62pts A personal property tax based on the weight of the property is deductible.

True

False

Flag this QuestionQuestion 72ptsThe 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.

Flag this QuestionQuestion 82pts 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

Flag this QuestionQuestion 94ptsSkip to question text.

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

Flag this QuestionQuestion 102pts Charitable contributions made to individuals are deductible if the individuals can show extreme financial need.

True

False

Flag this QuestionQuestion 112pts Points paid in connection with the purchase or improvement of a principal residence may be deducted in the year paid.

True

False

Flag this QuestionQuestion 122pts 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.

Flag this QuestionQuestion 132pts 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.

Flag this QuestionQuestion 142pts 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.

Flag this QuestionQuestion 152pts 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

Flag this QuestionQuestion 162ptsAll 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.

Flag this QuestionQuestion 172ptsSkip to question text. 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

Flag this QuestionQuestion 182ptsThe 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.

Flag this QuestionQuestion 192pts 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

Flag this QuestionQuestion 202ptsSkip to question text. 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

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