FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 10: Deductions and Losses: Certain Itemized Deductions

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

Essay

Review LaterAdd Note

Review Later

During the current year,Maria and her three dependent children had annual physical exams,which cost $750,and dental checkups for all four of them,which cost $420.In addition,Maria paid $800 for medically supervised treatments to enable her to stop smoking.After she stopped smoking,she began to gain weight and incurred $1,200 in costs for a medically supervised weight loss program.Which of these expenses qualify for the medical deduction?

Correct Answer

verified

A medical expense does not have to relat...

View Answer

Show Answer

Question 52

Essay

Review LaterAdd Note

Review Later

For calendar year 2012,Jon and Betty Hansen file a joint return reflecting AGI of $280,000.They incur the following expenditures: What is the amount of itemized deductions the Hansens may claim?

Correct Answer

verified

For the medical expenses,the taxpayers a...

View Answer

Show Answer

Question 53

Multiple Choice

Review LaterAdd Note

During 2012,Hugh,a self-employed individual,paid the following amounts: What is the maximum amount Hugh can claim as taxes in itemizing deductions from AGI?

For all of 2012,Aaron (a calendar year taxpayer)allowed the City Men's Shelter,a qualified charitable organization,to use a building he owns rent-free.The building normally rents for $12,000 a year.Aaron must report $12,000 of rent income and will be allowed a charitable contribution deduction for 2012 of $12,000.

Margaret,who is self-employed,paid $6,000 for medical insurance coverage.She can include the $6,000 when calculating her medical expense deduction.

In 2012,Brandon,age 72,paid $3,000 for long-term care insurance premiums.He may include the $3,000 in computing his medical expense deduction for the year.

Gambling losses may be deducted to the extent of the taxpayer's gambling winnings.Such losses are subject to the 2% floor for miscellaneous itemized deductions.

In 2012,Dena traveled 545 miles for specialized medical treatment that was not available in her hometown.She paid $80 for meals during the trip,$125 for a hotel room on Tuesday night,and $15 in parking fees.She did not keep records of other out-of-pocket costs for transportation.Dena can include $270 in computing her medical expenses.

Tom is advised by his family physician that he needs back surgery to correct a problem from his last back surgery.Since Tom is in a wheel chair,he needs his wife,Jean,to accompany him on his trip to Rochester,Minnesota,for in-patient treatment at the Mayo Clinic,which specializes in this type of surgery.Tom incurred the following costs: Compute Tom's medical expenses for the trip (subject to the 7.5% floor) .

In 2013,Rhonda received an insurance reimbursement for medical expenses incurred in 2012.She is not required to include the reimbursement in gross income in 2013 if she claimed the standard deduction in 2012.

Brian,a self-employed individual,pays state income tax payments of: $900 on January 17,2012 (4th estimated tax payment for 2011) $1,000 on April 16,2012 (1st estimated tax payment in 2012) $1,000 on June 15,2012 (2nd estimated tax payment in 2012) $1,000 on September 17,2012 (3rd estimated tax payment in 2012) $800 on January 15,2013 (4th estimated tax payment of 2012)

Frank,a widower,had a serious stroke and is no longer capable of caring for himself.He has three sons,all of whom live in different states.Because they are unable to care for Frank in their homes,his sons have placed him in a nursing home equipped to provide medical and nursing care facilities.Total nursing home expenses amount to $45,000 per year.Of this amount,$18,000 is directly attributable to medical and nursing care.Frank's Social Security benefits are used to pay for $12,000 of the nursing home charges.He has no other income.His sons plan to split the remaining medical expenses equally. a. What portion of the nursing home charges is potentially deductible as a medical expense? b. Can you provide Frank's sons with a tax planning idea for maximizing the deduction for his medical expenses?

Letha incurred a $1,600 prepayment penalty to a lending institution because she paid off the mortgage on her home early.The $1,600 is deductible as interest expense.

During 2012,Ralph made the following contributions to the University of Oregon (a qualified charitable organization) : Ralph acquired the stock in Raptor,Inc.,as an investment fourteen months ago at a cost of $42,000.Ralph's AGI for 2012 is $189,000.What is Ralph's charitable contribution deduction for 2012?

In 2005,Ross,who is single,purchased a personal residence for $170,000 and took out a mortgage of $100,000 on the property.In May of the current year,when the residence had a fair market value of $220,000 and Ross owed $70,000 on the mortgage,he took out a home equity loan for $110,000.He used the funds to purchase a BMW for himself and a Lexus SUV for his wife.For both vehicles,100% of the use is for personal activities.What is the maximum amount on which Ross can deduct home equity interest?

Helen pays nursing home expenses of $3,000 per month for her mother.The monthly charge covers the following items: $1,400 for medical care,$900 for lodging,and $700 for food.Under what circumstances can Helen include the $3,000 per month payment when computing her medical expense deduction for the year? If Helen is not allowed to include the entire payment,how much can she include?

Marilyn is employed as an architect.For calendar year 2012,she had AGI of $204,000 and paid the following medical expenses: Peter and Esther would qualify as Marilyn's dependents except that they file a joint return.Marilyn's medical insurance policy does not cover them.Marilyn filed a claim for reimbursement of $6,000 of her own expenses with her insurance company in December 2012 and received the reimbursement in January 2013.What is Marilyn's maximum allowable medical expense deduction for 2012?

Which of the following items would be an itemized deduction on Schedule A of Form 1040 subject to the 2%-of-AGI floor?

In 2012,Roseann makes the following donations to qualified charitable organizations: The ABC stock and the inventory were given to Roseann's church,and the comic book collection was given to the United Way.Both donees promptly sold the property for the stated fair market value.Disregarding percentage limitations,Roseann's charitable contribution deduction for 2012 is:

Georgia contributed $2,000 to a qualifying Health Savings Account in 2012.The entire amount qualifies as a medical expense and is potentially deductible as an itemized deduction.