Federal Taxation Chapter 5 Exam Bank Solution Manual ( Graded A+)
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Federal Taxation Chapter 5
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Federal Taxation Chapter 5
Federal Taxation Chapter 5 Exam Bank Solution Manual ( Graded A+)
Itemized deductions are taken when
- the taxpayer wants to
- they are less than the standard deduction
- they are higher than the standard deduction
- the standard deduction is limited by high AGI - Answers they are higher than...
Federal Taxation Chapter 5 Exam Bank Solution Manual ( Graded A+)
Itemized deductions are taken when
- the taxpayer wants to
- they are less than the standard deduction
- they are higher than the standard deduction
- the standard deduction is limited by high AGI - Answers they are higher than the standard deduction
The majority of itemized deductions are
- business expenses
- tax credits
- personal living expenses
- none of the above - Answers personal living expenses
Generally, a taxpayer may deduct the cost of medical expenses for which of the following?
- marriage counseling
- health club dues
- doctor-prescribed birth control
- trips for general health improvement - Answers doctor-prescribed birth control
The threshold amount for the deductibility of allowable medical expenses ordinarily is:
- 7.5% of AGI
- 10% of AGI
- 10% of taxable income
- 15% of taxable income - Answers 7.5% of AGI
During 2018, Raul incurred and paid the following expenses:
Prescription drugs- $470
Vitamins/ over the counter - 130
Doctor and dentist visits- 700
, Health club fee - 250
Hair transplant surgery - 2,400
What is the total amount of medical expenses (before considering the limitation based on AGI) that
would enter into calculation of itemized deductions for Raul's 2018 income tax return?
- $1,170
- 1,300
- 1,550
- 3,950 - Answers $1,170
Prescription drugs obtained from sources outside the United States, such as Canada, are
- always deductible no matter how they were obtained
- deductible only for citizens of canada living in the US
- Deductible if prescribed by a physician and approved by the FDA for legal importation
- never deductible - Answers Deductible if prescribed by a physician and approved by the FDA for legal
importation
For 2018 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&dentist fees $3,350
Prescription med 625
Med care insurance premium 380
Long term care ins. premium 1,600
Hearing aid 150
What amount can Perla take as a medical expense deduction (after AGI limitation) for her 2018 tax
return?
- $6,065
- 4,500
- 1,565
- 35 - Answers 1,565
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