R2: Itemized Deductions

Question 1

Qualification for the additional standard deduction

Answer 1

Must be 65+ or blind

+1,300 per person

Question 2

Charitable contribution: 30% limit items

Answer 2

• Appreciated stock

- Real property

Question 3

Are services allowed to be deducted for charity?

Answer 3

No, volunteering is not deductible

Question 4

When is an appraisal required for real property donations?

Answer 4

The property value must exceed $5,000

Question 5

Gambling losses

Answer 5

Itemized deduction, up to $3,000

Question 6

Charitable contributions subject to the 60% limit that are not fully deductible may be carried forward

Answer 6

5 years

Question 7

The deduction by an individual taxpayer for interest on investment indebtedness

Answer 7

Is limited to the taxpayer’s net investment income for the year

Question 8

Medical expense deductions and AMT

Answer 8

Not disregarded for AMT purposes

Question 9

Medicare insurance premiums

Answer 9

Allowed to be deducted

Question 10

Medical bills paid by credit card

Answer 10

Deductible in the year the card is charged

Question 11

Medical expenses deducted for previous medical treatments

Answer 11

Allowed to be deducted in the current year

Future payments not allowed unless it is a required prepayment

Question 12

In order to be deductible, charitable donations must be

Answer 12

Substantiated by a receipt, canceled check, etc…

Question 13

Requirement for casualty loss deduction

Answer 13

Loss must be uncontrollable and unavoidable

Examples: natural disasters, terrorist attacks

Question 14

Casualty loss deduction calculation

Answer 14

1. Lesser of:
   Decrease in FMV
   Adjusted basis
2. Subtract insurance proceeds
3. Subtract $100 per casualty loss
4. Subtract 10% of AGI (aggregate to all losses)

Question 15

Itemized deduction for qualified residence

Answer 15

Deductible when used to buy, build or improve the taxpayer’s home
HELC interest

Question 16

Itemized deduction for qualified residence

Answer 16

Deductible when used to buy, build or improve the taxpayer’s home
HELC interest is deductible if used to improve the home

Question 17

Interest paid on debt not used to acquire or improve a home

Answer 17

Not deductible

Example: student loan collateralized by home, not deductible interest

Question 18

An individual’s losses on transactions entered into for personal purposes are deductible only if

Answer 18

The losses qualify as casualty or theft losses

Question 19

50% Charitable deduction

Answer 19

ST property

Question 20

ST Property vs LT Property for charitable contributions

Answer 20

ST Property: lower of cost or FMV (50% limit)

LT Property: deductible at FMV on the date of gift (30% limit)

Question 21

Donation of property held less than a year

Answer 21

If appreciated in value, use basis

If depreciated in value, use FMV

Question 22

School for the disabled

Answer 22

Is a deductible medical expense

Question 23

Exceptions to medical expenses

Answer 23

Cosmetic surgery (unless it is to fix a deformity)
Disability insurance

Question 24

Schedule C

Answer 24

Profit and loss from business

Question 25

Schedule A

Answer 25

Itemized deductions

Question 26

Itemized deductions (COMITT)

Answer 26

Charitable contributions
Other miscellaneous deductions
Medical/dental expenses
Interest (mortgage and investment)
Taxes (state and local)
Theft and casualty losses