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Exam 6: Individual Deductions

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Question 61

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Grace is a single medical student at State University,a qualified educational institution.This year Grace paid university tuition of $12,000.Grace works part-time at the University library,and this year she reports $15,000 of salary and no other items of income or expense.Which of the following is a true statement?

A) Grace can deduct all of her tuition for AGI as a business expense.
B) Grace can deduct all of her tuition as a miscellaneous itemized deduction.
C) Grace can only deduct half of her tuition for AGI as a business expense.
D) Grace can only deduct half of her tuition as a miscellaneous itemized deduction.
E) All of the choices are false.

F) C) and E)
G) None of the above

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Question 62

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Detmer is a successful doctor who earned $204,800 in fees this year,but he also competes in weekend golf tournaments.Detmer reported the following expenses associated with competing in almost a dozen tournaments: Trarsportation to various tolunarnents                              $\$ 3,450$ Lodging                                                                              $1.896$ Eatry fees                                                                              $920$ Golf supplies (balls, tees, etc.)                                               $75$ This year Detmer won $5,200 from competing in various golf tournaments.Assuming that Detmer itemizes his deductions and that he did not have any other miscellaneous itemized deductions,what amount of the golfing expenses are deductible after considering all limitations if the tournament golfing is treated as a hobby activity?

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$1,000 = $5,200 − [2% × ($204,...

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Question 63

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Opal fell on the ice and injured her hip this winter.As a result she paid $3,000 for a visit to the hospital emergency room and $750 for follow-up visits with her doctor.While she recuperated,Opal paid $500 for prescription medicine and $600 to a therapist for rehabilitation.Insurance reimbursed Opal $1,200 for these expenses.What is the amount of Opal's qualifying medical expense?

This year Riley files single and reports modified AGI of $71,000.Riley paid $1,200 of interest on a qualified education loan.What amounts can Riley deduct for qualifying education interest?

Brice is a single,self-employed electrician who earns $60,000 per year in self-employment income.Brice paid the following expenses this year.Which of the expenses are deductible for AGI? 1.The cost of health insurance (not purchased through an exchange) 2) The employer portion of self-employment tax paid 3) Penalty on early withdrawal of funds from a certificate of deposit

Chuck has AGI of $70,000 and has made the following payments State income tax withholding                                        $\$ 1,900$ State incorne tax estirnated payments                                    $850$ Federal income tax withholding                                          $7,100$ Social Security tax withheld from wages                          $4,800$ State excise tax on liquor                                                  $400$ State irheritance tax                                                        $1,200$ Courity real estate tax                                                      $790$ School district tax on realty                                                $510$ Calculate the amount of taxes that Chuck can include with his itemized deductions.

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?

Collin and Christine are married and file joint.Their dependent son,Trevor,is a full-time college student at a qualified educational institution.This year Collin and Christine borrowed $30,000 to pay for Trevor's tuition ($22,000)and room and board ($8,000).At year end Collin paid $3,200 in interest on the loan.What amounts can Collin and Christine deduct for interest and education expenses if they estimate that their AGI will be $138,000 absent any deductions for AGI? Assume the 2016 rules apply for purposes of the qualified education expense deduction.

Larry recorded the following donations this year: $500 cash to a family in need $2,400 to a church $500 cash to a political campaign To 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?

Which of the following is a true statement?

Self-employed taxpayers can deduct the cost of health insurance as long as they do not actually participate in their spouses' employer-provided health plan.

This fall,Josh paid $5,000 for his tuition and fees at State University (a qualified education institution) .Assume that Josh is Marsha and Jeff's son and that Marsha and Jeff claim Josh as a dependent.Marsha and Jeff's modified AGI is $100,000.How much of Josh's $5,000 tuition and fees payments can Marsha and Jeff deduct this year? (Assume the 2016 rules apply for purposes of the qualified education expense deduction.)

When taxpayers donate cash and capital gain property to a public charity,the AGI percentage limitation is applied in the following order:

Which of the following costs are NOT deductible as an itemized medical expense?