Question 1

borrowed $600,000 to buy the residence and it is currently worth $1,000,000), $12,000 on a$150,000 home equity loan on his home, and $10,000 of interest on a mortgage on his vacation home (loan of $300,000; home purchased for $400,000). How much interest expense can Benjamin deduct as an itemized deduction?

Accepted Answer

$38,000.
Benjamin's acquisition debt on ...

Question 2

This year Norma paid $1,200 of real estate taxes on her personal residence. Norma's other itemized deductions (state income taxes)  only amount to $3,100. Which of the following is a true statement if Norma files single with one personal exemption?

Accepted Answer

A)   Norma should deduct $4,300 even if her standard deduction is $6,350.
B)   Norma should deduct $1,200 even if her standard deduction is $6,350.
C)   Norma should deduct $3,100 even if her standard deduction is $6,350.
D)   Norma should claim the standard deduction.
E)   Norma can deduct 4,300 for AGI.F) A) and C)
G) D) and E)

Question 3

Jill currently lives in the suburbs and commutes 25 miles to her office in downtown Freeport. She is considering quitting her current job to look for new employment in the downtown area. Which of the following statements best describes how Jill can satisfy the distance test for deducting moving expenses if she accepts a new job in downtown Freeport?

Accepted Answer

A)   Jill must move 25 miles east from downtown Freeport.
B)   Jill must move at least 25 miles further away from downtown Freeport.
C)   Jill must move 50 miles further away from downtown Freeport.
D)   Jill cannot satisfy the distance test if she accepts a job in downtown Freeport.
E)   Jill need not move her residence because she is starting a new job.F) A) and B)
G) None of the above

Question 4

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 other itemized deductions (e.g., mortgage interest) of $3,500. If Kelly files single with AGI of $56,000, what amount of itemized deductions will she be eligible to claim?

Accepted Answer

$11,760 = ...

Question 5

All reasonable moving expenses are deductible if the move is a minimum of 35 miles indistance from the taxpayer's old residence to the taxpayer's new residence.

Accepted Answer

A) True 
 B)False

Question 6

The deduction to individual taxpayers for charitable contributions paid in cash made to public charities is limited to ten percent of the taxpayer's AGI whereas casualty losses on personal assets are only deductible to the extent the losses exceed ten percent of the taxpayer's AGI.

Accepted Answer

A) True 
 B)False

Question 7

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.

Accepted Answer

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

Exam 6: Individual Deductions

Correct Answer
verified
$11,760 = ...
View Answer

This year Norma paid $1,200 of real estate taxes on her personal residence. Norma's other itemized deductions (state income taxes) only amount to $3,100. Which of the following is a true statement if Norma files single with one personal exemption?

Correct Answer
verified

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.

Correct Answer
verified
$4,050 = $1,900 + $850 + $790 ...
View Answer

Correct Answer
verified

The deduction to individual taxpayers for charitable contributions paid in cash made to public charities is limited to ten percent of the taxpayer's AGI whereas casualty losses on personal assets are only deductible to the extent the losses exceed ten percent of the taxpayer's AGI.

Correct Answer
verified

Correct Answer
verified
$38,000.
Benjamin's acquisition debt on ...
View Answer

All reasonable moving expenses are deductible if the move is a minimum of 35 miles indistance from the taxpayer's old residence to the taxpayer's new residence.

Correct Answer
verified

Exam 6: Individual Deductions

Correct Answerverified$11,760 = ...View AnswerShow Answer

This year Norma paid $1,200 of real estate taxes on her personal residence. Norma's other itemized deductions (state income taxes) only amount to $3,100. Which of the following is a true statement if Norma files single with one personal exemption?

Correct AnswerverifiedShow Answer

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.

Correct Answerverified$4,050 = $1,900 + $850 + $790 ...View AnswerShow Answer

Correct AnswerverifiedShow Answer

The deduction to individual taxpayers for charitable contributions paid in cash made to public charities is limited to ten percent of the taxpayer's AGI whereas casualty losses on personal assets are only deductible to the extent the losses exceed ten percent of the taxpayer's AGI.

Correct AnswerverifiedShow Answer

Correct Answerverified$38,000.Benjamin's acquisition debt on ...View AnswerShow Answer

All reasonable moving expenses are deductible if the move is a minimum of 35 miles indistance from the taxpayer's old residence to the taxpayer's new residence.

Correct AnswerverifiedShow Answer

Correct Answer
verified
$11,760 = ...
View Answer

Correct Answer
verified

Correct Answer
verified
$4,050 = $1,900 + $850 + $790 ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
$38,000.
Benjamin's acquisition debt on ...
View Answer

Correct Answer
verified