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This year Latrell made the following charitable contributions: This year Latrell made the following charitable contributions: Determine the maximum amount of Latrell's charitable deduction assuming the Jones Foundation is a private nonoperating foundation and Latrell's AGI is $100,000 this year.You may assume that the stock and painting have been owned for 10 years. Determine the maximum amount of Latrell's charitable deduction assuming the Jones Foundation is a private nonoperating foundation and Latrell's AGI is $100,000 this year.You may assume that the stock and painting have been owned for 10 years.

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The charitable deduction is $40,500 over...

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Jenna (age 50)files single and reports AGI of $40,000.This year she has incurred the following medical expenses: Jenna (age 50)files single and reports AGI of $40,000.This year she has incurred the following medical expenses: Calculate the amount of medical expenses that will be included with Jenna's other itemized deductions. Calculate the amount of medical expenses that will be included with Jenna's other itemized deductions.

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$1,910.All expenses are qualified medica...

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Which of the following is a true statement?


A) Taxpayers may only deduct interest on up to $1,500,000 of acquisition indebtedness.
B) Taxpayers may deduct interest on up to $1,000,000 of home-equity debt.
C) The deduction for investment interest expense is not subject to limitation.
D) A taxpayer who incurs acquisition indebtedness in 2018 may only deduct interest on up to $750,000 of acquisition indebtedness.
E) None of the choices are correct.

F) All of the above
G) None of the above

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Rachel is an engineer who practices as a sole proprietor.This year,Rachel had net business income of $400,000 from her business.Assume that Rachel pays $150,000 wages to her employees,she has $20,000 of property (unadjusted basis of equipment she purchased last year),she has no capital gains,and her taxable income before the deduction for qualified business income is $380,000.Calculate Rachel's deduction for qualified business income.

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$75,000.Engineering is a qualified trade...

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Taxpayers traveling for the primary purpose of receiving essential and deductible medical care may deduct the cost of travel.

A) True
B) False

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Which of the following is a true statement?


A) The standard deduction is increased for taxpayers who are blind or deaf at year-end.
B) A married couple is only entitled to one addition to their standard deduction even if both spouses are both over age 65.
C) Bunching itemized deductions is a legal method of tax avoidance.
D) The standard deduction is subject to a phase-out based on AGI.
E) All of these choices are true.

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

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This year,Jong paid $3,000 of interest on a qualified education loan.Jong files married filing jointly and reports modified AGI of $152,000.What is Jong's deduction for interest expense on an educational loan?


A) $2,500.
B) $3,000.
C) $1,500.
D) $1,000.
E) None of the choices are correct.

F) B) and E)
G) B) and D)

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Taxpayers generally deduct the lesser of their standard deduction or their itemized deductions.

A) True
B) False

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Which of the following is a true statement?


A) Congress allows self-employed taxpayers to deduct the employer portion of their self-employment tax.
B) To deduct expenses associated with any profit-motivated activity,taxpayers must maintain a high level of involvement or effort in the activity throughout the year.
C) Business activities never require a relatively high level of involvement or effort from the taxpayer.
D) All business expenses are deducted for AGI.
E) All of these choices are correct.

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

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Campbell,a single taxpayer,has $95,000 of profits from her general store,which she operates as a sole proprietorship.She has no employees,$40,000 of qualified property,and $50,000 of taxable income before the deduction for qualified business income.How much is Campbell's deduction for qualified business income?


A) $95,000.
B) $19,000.
C) $10,000.
D) $8,000.
E) $0.

F) A) and D)
G) B) and E)

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Which of the following is a true statement?


A) Unreimbursed employee business expenses are not deductible.
B) Investment advisory expenses are not deductible.
C) Business deductions are one of the most common deductions for AGI,but they are not readily visible on Schedule 1 of Form 1040.
D) The distinction between business and investment expenses is critical for determining whether a deduction is claimed above the line (for AGI) or below the line (itemized) .
E) All of these choices are correct.

F) A) and B)
G) A) and E)

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


A) a 30 percent of AGI limitation is applied to the aggregate donation.
B) a 60 percent of AGI limitation is applied to the cash donation and a 20 percent of AGI limitation is applied to the fair market value of the capital gain donation.
C) a 30 percent of AGI limitation is applied to the cash donation and a 20 percent of AGI limitation is applied to the fair market value of the capital gain donation.
D) a 60 percent of AGI limitation is applied to the cash donation and the fair market value of the capital gain donation is subject to the lesser of a 30 percent of AGI limitation or a 50 percent of AGI limitation after subtracting the cash contributions.
E) donations to public charities are not subject to AGI limitations.

F) A) and B)
G) A) and D)

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Ned is a head of household with a dependent son,Todd,who is a full-time student.This year Ned made the following expenditures related to Todd's support: Ned is a head of household with a dependent son,Todd,who is a full-time student.This year Ned made the following expenditures related to Todd's support: What amount can Ned include in his itemized deductions? A) $1,700 included in Ned's miscellaneous itemized deductions. B) $2,050 included in Ned's miscellaneous itemized deductions. C) $950 included in Ned's miscellaneous itemized deductions. D) $600 included in Ned's medical expenses. E) None of the choices are correct. What amount can Ned include in his itemized deductions?


A) $1,700 included in Ned's miscellaneous itemized deductions.
B) $2,050 included in Ned's miscellaneous itemized deductions.
C) $950 included in Ned's miscellaneous itemized deductions.
D) $600 included in Ned's medical expenses.
E) None of the choices are correct.

F) A) and B)
G) A) and C)

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Rachel is an accountant who practices as a sole proprietor.This year,Rachel had net business income of $270,000 from her practice.Assume that Rachel pays $50,000 wages to her employees,she has $20,000 of property (unadjusted basis of equipment she purchased last year),she has no capital gains,and her taxable income before the deduction for qualified business income is $225,000.Calculate Rachel's deduction for qualified business income.

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$0.Since Rachel has taxable income of $2...

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Rachel is an engineer who practices as a sole proprietor.This year,Rachel had net business income of $500,000 from her business.Assume that Rachel pays $20,000 wages to her employees,she has $500,000 of property (unadjusted basis of equipment she purchased last year),she has no capital gains,and her taxable income before the deduction for qualified business income is $380,000.Calculate Rachel's deduction for qualified business income.

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$17,500.Engineering is a qualified trade...

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Madeoff donated stock (capital gain property) to a public charity.He purchased the stock three years ago for $100,000,and on the date of the gift,it had a fair market value of $200,000.What is his maximum charitable contribution deduction for the year related to this stock if his AGI is $500,000?


A) $100,000.
B) $200,000.
C) $150,000.
D) $250,000.
E) None of the choices are correct.

F) C) and D)
G) B) and E)

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Chuck has AGI of $70,000 and has made the following payments: Chuck has AGI of $70,000 and has made the following payments: Calculate the amount of taxes that Chuck can include with his itemized deductions. Calculate the amount of taxes that Chuck can include with his itemized deductions.

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$4,050 = $1,900 + $850 + $790 ...

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Carly donated inventory (ordinary income property) to a church.She purchased the inventory last month for $100,000,and on the date of the gift,it had a fair market value of $92,000.What is her maximum charitable contribution deduction for the year related to this inventory if her AGI is $200,000?


A) $100,000.
B) $92,000.
C) $60,000.
D) $46,000 if the church sells the inventory.
E) None of the choices are correct.

F) A) and C)
G) A) and B)

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Which of the following taxes will not qualify as an itemized deduction?


A) Personal property taxes assessed on the value of specific property.
B) State,local,and foreign income taxes.
C) Real estate taxes on a residence.
D) Gasoline taxes on personal travel.
E) None of the choices qualify as itemized deductions.

F) A) and B)
G) A) and C)

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Which of the following is a true statement?


A) Individuals qualify for the moving expense deduction only if they change employers.
B) Individuals qualify for the moving expense deduction if their employer does not pay for the moving expenses.
C) Moving expenses are deductible from AGI.
D) Moving expenses are generally not deductible.

E) A) and C)
F) A) and B)

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