Questions from General Taxation

Q: Prescription drugs obtained from sources outside the United States, such as

Prescription drugs obtained from sources outside the United States, such as Canada, are: a. Always deductible no matter how they were obtained. b. Deductible only for citizens of Canada living in the...

Q: For 2017, Perla, who is single and 55 years of

For 2017, Perla, who is single and 55 years of age, had AGI of $60,000. During the year, she incurred and paid the following medical costs: Doctor and dentist fees…………………………………………..$3,350 Prescriptio...

Q: For 2017, the amount of the sales tax deduction is calculated

For 2017, the amount of the sales tax deduction is calculated by: a. Determining the actual sales tax paid during the year. b. Using the IRS sales tax deduction calculator. c. Using the sales worksh...

Q: Daryl, who had significant itemized deductions for 2017 and therefore was

Daryl, who had significant itemized deductions for 2017 and therefore was eligible to use Schedule A, purchased a new vehicle in 2017 for $40,000 with a state sales tax of 10%. The allocated deduction...

Q: During 201 Noriko paid the following taxes related to her home:

During 201 Noriko paid the following taxes related to her home: Real Estate property taxes on residence (paid from escrow account)……………..$1,800 State personal property tax on her automobile (based on...

Q: What is the maximum amount of personal residence acquisition debt on which

What is the maximum amount of personal residence acquisition debt on which interest is fully deductible on Schedule A? a. $1,000,000. b. $500,000. c. $250,000. d. $0.

Q: For 2017, the deduction by a taxpayer for investment interest expense

For 2017, the deduction by a taxpayer for investment interest expense is: a. Not limited. b. Limited to the taxpayer’s net investment income for 2017. c. Limited to the investment interest paid in 2...

Q: For 2017, Thomas, a single parent, reported the following

For 2017, Thomas, a single parent, reported the following amounts relating to his investments: Net investment income………………..……………………………………………………………..$7,000 Interest expense on a loan to purchase stoc...

Q: Which of the following organizations qualifies for deductible charitable contributions?

Which of the following organizations qualifies for deductible charitable contributions? a. A nonprofit educational institution. b. The Salvation Army. c. Churches. d. All of the above.

Q: Which of the following statements is not true regarding documentation requirements for

Which of the following statements is not true regarding documentation requirements for charitable contributions? a. If the total deduction for all noncash contributions for the year is more than $500...