R1 Review part 2

Question 1

Medical expenses deduction

Answer 1

Qualified expenses
-insurance reimbursements
-7.5 AGI
=Deductible medical expenses

Question 2

Charitable contribution as an individual

Answer 2

Limits for each type of donation
Cash 60% of AGI
Property 50% of AGI
Long-term Capital gain property 30% of AGI

Question 3

Additional standard deduction

Answer 3

One qualifying taxpayer
Over 65 or blind single 1950 married 1550
both over 65 and blind single 3900 married 3100

Both taxpayers qualify
Over 65 or blind 3100
Over 65 and blind 6200

Question 4

Federal income tax withheld is

Answer 4

Not deductible

(State and local income tax withheld and paid are deductible)

Question 5

Loss in natural disaster (Casualty loss)

Answer 5

Smaller loss (FMV change or the Value of the Property before the disaster)
-insurance proceeds
-10% AGI
-100
=deductible loss

Question 6

The deduction for interest expense on investment indebtedness is limited for individuals

Answer 6

Net investment income (investment income less investment expenses).

Question 7

For a personal residence that is not used for rental purposes

Answer 7

no deduction is allowed for utilities costs or insurance, thus the only deductible amount here is for the mortgage interest.

If there is property indebtedness can be deducted up to 750,000

Question 8

A contribution must be

Answer 8

Substantiated to be deductible

Question 9

For contributions over 5k what is required

Answer 9

A qualified appraiser

Question 10

If ordinary property is donated

Answer 10

The value would be the lessor of the FMV or the purchase price

Question 11

If Long-term capital gain property is donated

Answer 11

Use the FMV as the basis

Question 12

A contemporaneous written acknowledgment is required for

Answer 12

donations of $250 or more.