Question 1

In 2014 Sela traveled from her home in Flagstaff to San Francisco to seek medical care. Because she was unable to travel alone, her mother accompanied her. Total expenses included:  The total medical expenses deductible before the 10% limitation are

Accepted Answer

According to the information provided, the total expenses include the medical expenses deductible before the 10% limitation. We need to subtract the 10% limitation amount from the total expenses to find the deductible amount.

Total expenses = $4,800 
10% limitation = 0.10 x $4,800 = $480

Deductible amount = $4,800 - $480 = $2,135

Therefore, the best choice is (B) $2,135 as the deductible before the 10% limitation.

Question 2

All of the following payments for medical items are deductible with the exception of the payment for

Accepted Answer

The answer of All of the following payments for medical...

Question 3

Van pays the following medical expenses this year: • $1,500 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.
• $3,800 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?

Accepted Answer

Van can include $2,700 as qualified medical expenses before limitation. The $1,500 for his son's doctor bills cannot be included since his son is claimed as a dependent by his former spouse. The cost of eyeglasses and dental work are qualified medical expenses. The face lift is also a qualified medical expense because it is for a specific medical condition (wrinkles around his eyes), but it is subject to the cosmetic surgery limitation. The limitation is the amount by which the cost of the cosmetic surgery exceeds the increase in value to the property operated on. Since there is no increase in value to Van's eyes, the entire $3,800 is subject to the limitation. The limitation is calculated as $3,800 - $0 (no increase in value) = $3,800. Thus, Van can only include $3,800 - $3,100 (7.5% of AGI limitation) = $700 of the face lift cost, in addition to the eyeglasses and dental work. Therefore, the total amount of qualified medical expenses before limitation is $300 + $900 + $700 = $1,900. However, since Van's AGI is not mentioned in the question, we cannot determine if he exceeds the 7.5% limitation.

Question 4

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?

Accepted Answer

Doug can deduct the portion of the tax that is based on the value of the car, which is $700. He cannot deduct the portion based on the weight of the car. Therefore, the correct answer is $700.

Question 5

During the year Jason and Kristi, cash basis taxpayers, paid the following taxes:  What amount can Kristi and Jason claim as an itemized deduction for taxes on their federal income tax return in the current year?

Accepted Answer

The answer of During the year Jason and Kristi, cash...

Question 6

Matt paid the following taxes in 2014:  What amount can Matt deduct as an itemized deduction on his tax return?

Accepted Answer

The answer of Matt paid the following taxes in 2014:...

Question 7

The following taxes are deductible as itemized deductions with the exception of

Accepted Answer

Federal income taxes are not deductible as they are already accounted for in the taxpayer's federal tax liability. The other options (state income taxes, foreign real property taxes, and local personal property taxes) are deductible as itemized deductions.

Question 8

Mr. and Mrs. Thibodeaux, who are filing a joint return, have adjusted gross income of $75,000. During the tax year, they paid the following medical expenses for themselves and for Mrs. Thibodeaux's mother, Mrs. Watson (age 63). Mrs. Watson provided over one-half of her own support.  Mr. and Mrs. Thibodeaux received no reimbursement for the above expenditures. What is the amount of their deductible itemized medical expenses?

Accepted Answer

The answer of Mr. and Mrs. Thibodeaux, who are filing...

Question 9

All of the following are deductible as medical expenses except

Accepted Answer

According to IRS regulations, expenses for vitamins and health foods that improve a taxpayer's general health are not deductible as medical expenses. Only expenses that are for the treatment or prevention of a specific medical condition are deductible.

Question 10

Linda had a swimming pool constructed at her house. Her physician advised and prescribed to her that the pool would slow the effects of her degenerative disease. The pool was not suitable for recreational use. Prior to the construction of the pool, the fair market value of her house was $172,000. After the construction of the pool, the appraised fair market value of the house was $181,000. The cost of the pool was $13,000. What is the amount of Linda's qualified medical expense (before considering limits based on AGI)?

Accepted Answer

The answer of Linda had a swimming pool constructed at...

Question 11

Alan, who is a security officer, is shot while on the job. As a result, Alan suffers from a chronic leg injury and must use a wheelchair and undergo therapy to regain and retain strength. Alan's physician recommends that he install a whirlpool bath in his home for therapy. During the year, Alan makes the following expenditures:  A professional appraiser tells Alan that the whirlpool has increased the value of his home by $1,000. Alan's deductible medical expenses (before considering limitations based on AGI)will be

Accepted Answer

The answer of Alan, who is a security officer, is...

Question 12

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 (before considering limits based on AGI)?

Accepted Answer

The answer of Leo spent $6,600 to construct an entrance...

Question 13

Mr. and Mrs. Gere, who are filing a joint return, have adjusted gross income of $50,000. During the tax year, they paid the following medical expenses for themselves and for Mrs. Gere's mother, Mrs. Williams. The Gere's could claim Mrs. Williams as their dependent, but she has too much gross income.  Mr. and Mrs. Gere received no reimbursement for the above expenditures. What is the amount of their deductible itemized medical expenses?

Accepted Answer

To calculate the deductible medical expenses, we need to subtract 7.5% of AGI from the total medical expenses. Therefore:

$4,000 + $1,500 + $1,800 + $1,000 + $200 + $900 = $9,400 total medical expenses
$50,000 x 7.5% = $3,750
$9,400 - $3,750 = $5,650 deductible medical expenses

Since $5,650 is higher than the standard deduction for married filing joint taxpayers ($24,800 for tax year 2020), it is beneficial for Mr. and Mrs. Gere to itemize their deductions and claim the $5,650 as deductible medical expenses. Therefore, the correct answer is B.

Question 14

Legal fees for drafting a will are generally deductible.

Accepted Answer

To be deductible,such fees must deal with tax-related items.

Question 15

Mitzi's medical expenses include the following:  Mitzi's AGI for the year is $33,000. She is single and age 49. None of the medical costs are reimbursed by insurance. After considering the AGI floor, Mitzi's medical expense deduction is

Accepted Answer

The answer of Mitzi's medical expenses include the following: ...

Question 16

Caleb's medical expenses before reimbursement for the year include the following:  Caleb's AGI for the year is $50,000. He is single and age 58. Caleb also receives a reimbursement for medical expenses of $1,000. Caleb's deductible medical expenses that will be added to the other itemized deduction will be

Accepted Answer

Caleb's total medical expenses before reimbursement are $10,100. Since his AGI is $50,000, his medical expenses are only deductible to the extent that they exceed 7.5% of his AGI, which is $3,750. Therefore, Caleb's deductible medical expenses are $10,100 - $1,000 (reimbursement) - $3,750 (7.5% of AGI) = $5,350. However, there is also a $100 floor for medical expenses, meaning that only expenses above $100 are deductible. Therefore, Caleb's final deductible medical expenses are $5,350 - $100 = $5,250. Adding this to his other itemized deductions gives a total of $9,100 in deductible expenses.

Question 17

In February of the current year (assume 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?

Accepted Answer

Property taxes are deductible only in the year they are paid and are allocated based on the number of days in the tax period that fall within a given tax year, not when they are assessed or accrued. Since Ken and Kelsey purchased their home on May 1 of last year, they only owned the property for 8 months out of the 12-month tax period covered by the tax statement (May - December). Therefore, they can only claim 8/12 or 2/3 of the total property tax as an itemized deduction, which is $1,600 x 2/3 = $1,066.67 rounded up to $1,074.

Question 18

In 2014, Carlos filed his 2013 state income tax return and paid taxes of $800. Also in 2014, Carlos's employer withheld state income tax of $750 from Carlos's salary. In 2015, Carlos filed his 2014 state income tax return and paid an additional $600 of state income tax due for 2014. How much state income tax can Carlos deduct on his 2014 federal income tax return for state income tax?

Accepted Answer

The answer of In 2014, Carlos filed his 2013 state...

Question 19

A taxpayer can deduct a reasonable amount for small out-of-pocket (i.e. cash)donations.

Accepted Answer

The answer of A taxpayer can deduct a reasonable amount...

Question 20

A review of the 2014 tax file of Gregory, a single taxpayer who is age 40, provides the following information regarding Gregory's 2014 tax status:  In 2015, Gregory receives a reimbursement for last year's medical expenses of $1,200. As a result, Gregory must

Accepted Answer

The answer of A review of the 2014 tax file...

Quiz 7: Itemized Deductions

In 2014 Sela traveled from her home in Flagstaff to San Francisco to seek medical care. Because she was unable to travel alone, her mother accompanied her. Total expenses included: The total medical expenses deductible before the 10% limitation are

All of the following payments for medical items are deductible with the exception of the payment for

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?

During the year Jason and Kristi, cash basis taxpayers, paid the following taxes: What amount can Kristi and Jason claim as an itemized deduction for taxes on their federal income tax return in the current year?

Matt paid the following taxes in 2014: What amount can Matt deduct as an itemized deduction on his tax return?

The following taxes are deductible as itemized deductions with the exception of

All of the following are deductible as medical expenses except

Legal fees for drafting a will are generally deductible.

Mitzi's medical expenses include the following: Mitzi's AGI for the year is $33,000. She is single and age 49. None of the medical costs are reimbursed by insurance. After considering the AGI floor, Mitzi's medical expense deduction is

A taxpayer can deduct a reasonable amount for small out-of-pocket (i.e. cash)donations.

A review of the 2014 tax file of Gregory, a single taxpayer who is age 40, provides the following information regarding Gregory's 2014 tax status: In 2015, Gregory receives a reimbursement for last year's medical expenses of $1,200. As a result, Gregory must