ch10 - 1 Any personal expenditures not specifically allowed...

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1. Any personal expenditures not specifically allowed as itemized deductions by the tax law are nondeductible (unless they are deductible in arriving at AGI). *a. True b. False 2. The election to itemize is appropriate when total itemized deductions are less than the standard deduction based on the taxpayer’s filing status. a. True *b. False 3. A medical expense does not have to relate to a particular ailment to be deductible. *a. True b. False 4. Erica, Carol’s daughter, has a mild form of autism. Dr. Malone recommends that Carol send Erica to a special school for autistic children when she enters first grade. Erica may include the cost of tuition, meals, and lodging for the special school when computing her medical expense deduction. *a. True b. False 5. Mindy paid an appraiser to determine how much a capital improvement made for medical reasons increased the value of her personal residence. The appraisal fee qualifies as a deductible medical expense. a. True *b. False 6. George, a sculptor, has an elevator installed in his house to transport heavy materials to his loft studio because he is concerned that he might strain his back by lifting heavy objects. George may deduct the full cost of the elevator as a medical expense. a. True *b. False 7. Upon the recommendation of a physician, Ed has a swimming pool installed at his residence because of a heart condition. If he is allowed to deduct all or part of the cost of the pool, Ed’s increase in utility bills due to the operation of the pool qualifies as a medical expense.
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*a. True b. False 8. Carol pays the medical expenses of her son, Chad. Chad would qualify as Carol’s dependent except that he earns $7,500 during the year. Carol may not claim Chad’s medical expenses because he is not a dependent. a. True *b. False 9. Tom paid $1,880 of medical expenses for his son, Ted. Ted is married to Ann and they file a joint return. Tom cannot include the $1,880 of expenses when calculating his medical expense deduction. a. True *b. False 10. In 2011, Dena traveled 545 miles for specialized medical treatment that was not available in her hometown. She paid $80 for meals during the trip, $125 for a hotel room on Tuesday night, and $15 in parking fees. She did not keep records of other out-of-pocket costs for transportation. Dena can include $235 in computing her medical expenses. a. True *b. False 11. Walter traveled to another city to obtain specialized outpatient medical care not available in his hometown. His sister accompanied him because he was too ill to travel alone. He may include the cost of his airfare and lodging (up to $50 per night for himself and up to $50 per night for his sister) in determining his medical expense deduction. *a. True
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ch10 - 1 Any personal expenditures not specifically allowed...

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