FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 6: Individual Deductions

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

True/False

Review LaterAdd Note

Review Later

The deduction for medical expenses is limited to the amount of unreimbursed qualifying medical expenses paid during the year reduced by 2 percent of the taxpayer's AGI.

A) True
B) False

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following is a true statement?

A) The deduction for interest on educational loans is subject to a phase-out limitation.
B) The deduction for moving expenses is subject to a phase-out limitation.
C) Self-employed taxpayers are allowed to deduct health care premiums even if the taxpayer is eligible to participate in an employer-provided health plan.
D) Excess business losses are deductible up to $100,000.
E) All of these choices are false.

F) C) and D)
G) A) and D)

Correct Answer

verified

Show Answer

Question 23

Essay

Review LaterAdd Note

Misti purchased a residence this year.Misti,age 32,is a single parent and lives with her 1-year-old daughter.This year,Misti received a salary of $160,000 and made the following payments: Misti files as a head of household.Calculate her taxable income this year.

Jon and Holly are married and live in a retirement community.This year Jon celebrated his 65th birthday and Holly turned 68 years old.For their ages,both Jon and Holly are in good health.What is the amount of their standard deduction this year?

Which of the following is a deductible miscellaneous itemized deduction?

Rental or royalty expenses are deductible "for" AGI.

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

Last year Henry borrowed $15,000 to help pay for his dependent daughter's college tuition.This year Henry paid $2,800 of interest on the loan.How much,if any,interest can Henry deduct if he files single with AGI of $77,500?

Alexandra operates a garage as a sole proprietorship.Alexandra also owns a half interest in a partnership that operates a gas station.This year Alexandra paid or reported the following expenses related to her garage and other property.Determine Alexandra's AGI for 2019.

This fall Millie finally repaid her student loan.She originally borrowed the money to pay tuition several years ago,when she attended State University (a qualified educational institution) .This year Millie paid a total of $2,400 of interest on the loan.If Millie files single and reports $75,000 of income and no other items of income or expense,how much of the interest can she deduct?

Taxpayers are allowed to deduct mortgage interest on up to $1,000,000 of acquisition debt for their qualified residence if the acquisition debt is incurred after December 15,2017.

The phrase "ordinary and necessary" means that an expense must be appropriate and helpful for generating a profit.

Unreimbursed employee business expenses and hobby expenses are not deductible.

Campbell,a single taxpayer,has $400,000 of profits from her general store,which she operates as a sole proprietorship.She has no employees,$40,000 of qualified property,and $500,000 of taxable income before the deduction for qualified business income.How much is Campbell's deduction for qualified business income?

This year Kelly bought a new auto for $20,000 plus $1,650 in state and local sales taxes.Besides this sales tax,Kelly also paid $8,260 in state income taxes and had mortgage interest of $5,500 ($400,000 acquisition indebtedness on her residence).If Kelly files single with AGI of $56,000,what amount of itemized deductions will she be eligible to claim?

Erika (age 62)was hospitalized with injuries from an auto accident this year.She incurred the following expenses from the accident: In addition,Erika's auto was completely destroyed in the accident.She bought the car several years ago for $18,000 and it was worth $4,700 at the time of the accident.What are Erika's itemized deductions this year if she was uninsured and her AGI is $40,000?

Which of the following is a true statement?

Self-employed taxpayers can deduct the cost of health insurance as a "for" AGI deduction as long as they do not actually participate in their spouses' employer-provided health plans.

Kaylee is a self-employed investment counselor who also owns a rental property.This year,she collected $85,000 in fees and paid the following expenses: Kaylee files single.Calculate her adjusted gross income.

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