TAX: Itemized Deductions- Other

Question 1

T/F: In order for a charitable contribution to be deducted it has to be to a qualified charitable organization?

Answer 1

True- also services cannot be deducted

Question 2

What % of AGI can be deducted for cash contributions?

Answer 2

60%

Question 3

What % of AGI can be deducted for property contributions?

Answer 3

50%

Question 4

What is the carryover time period for excess that cannot be deducted?

Answer 4

Carryover is 5 years, no carry back

Question 5

If a taxpayer gives away property that is a LTCG, what is the % limit of AGI?

Answer 5

30% of AGI

Question 6

What if the property is 1231 property? How do you calculate the deduction?

Answer 6

FMV of the asset
- Ordinary Income (depreciation claimed)
= Charitable contribution of the property

Question 7

Define a casualty requirements?

Answer 7

Sudden and unexpected

In order for it to be deductible, it has to be a federally declared disaster by the President of the United States

Question 8

Can casualty losses offset casualty losses?

Answer 8

Yes but not to net out to a loss that would be deductible

Question 9

What is the formula for calculating the casualty loss deduction?

Answer 9

Lower of the decline in FMV or AB of the property
- Insurance reimbursements
- Casualty Floor of $100 for each casualty
- 10% of AGI
= Casualty loss deduction

Question 10

2% Miscellaneous Itemized Deductions

Answer 10

Beginning in 2018, 2% of miscellaneous itemized deductions have been removed!

• moving expenses
• unreimbursed employee expenses and expenses reimbursed but not under a accountable plan
• Investment expenses (safe deposit boxes)