CH 11 Quiz with solutions - Name: _ True (T) or False (F) _...

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Name: ________________________________________________ True (T) or False (F) ____ 1. H and W have been divorced for two years. H paid for W’s dental bills. W is otherwise self-supported. H may deduct W’s dental bills as a medical expense. ____ 2. The medical expenses of a child of divorced parents are deductible only by the custodial parent. ____ 3. Medical expenses incurred during 2008 but not paid until 2009 can be deducted in either year, but not both. ____ 4. If a doctor prescribes a swimming pool for a patient for medical reasons, the entire cost of the swimming pool is a deductible medical expense. ____ 5. Under certain circumstances, the medical insurance premiums of a sole proprietor may be deducted either for A.G.I. or from A.G.I. ____ 6. Assuming the taxpayer itemizes deductions, medical expenses are deductible only to the extent that they exceed 7.5 percent of the taxpayer’s adjusted gross income. ____ 7. No deduction is allowed for the cost of cosmetic surgery unless it is necessary to ameliorate a congenital deformity, a personal injury arising from an accident or trauma, or a disfiguring disease. ____ 8. The prepayment of medical expenses qualifies as a current deduction only if the taxpayer is required to make the payment as a condition of receiving the medical services. ____ 9. Like home mortgage interest, medical expense deductions are subject to the itemized deduction cutback rule. ____ 10. If the principal reason an individual is in a nursing home is the availability of needed medical care, the entire cost of the medical care qualifies as a medical deduction. ____ 11. A taxpayer who uses his or her personal automobile for medical transportation and does not want to calculate actual expenses is allowed a deduction of 58 cents a mile. ____ 12. The cost of meals and lodging while en route to a medical facility is allowed as a medical expense deduction. ____ 13. Deductible medical expenses include all medical care insurance premiums paid by the taxpayer with after-tax dollars. ____ 14. A taxpayer who deducted $900 of medical expenses last year must include in gross income no more than $900 of any medical expense reimbursement received this year. ____ 15. Federal income taxes related solely to the taxpayer’s trade or business income are allowed as a deduction in arriving at adjusted gross income. ____ 16. On a sale of real property, if the buyer pays the real estate taxes for the entire year, the seller’s amount realized must be increased to reflect that portion of the taxes attributable to the seller. ____ 17. On a sale of real property, if the buyer pays the real estate taxes for the entire year, the seller will be denied any deduction for these property taxes. ____ 18. Even though the seller of real property pays the real estate taxes for the entire year, the buyer will be allowed to
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CH 11 Quiz with solutions - Name: _ True (T) or False (F) _...

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