ACC-330 Federal Taxation I
3-2 Assignment: Deductions (Problem Set from Chapters 6, 9, and 10)
Difference Between Deductions For and From AGI
It is important to classify deductible expenses as deductions for adjusted gross income (AGI) or deductions
from adjusted gross income. Deductions for AGI can be claimed whether or not the taxpayer itemizes.
Deductions from AGI result in a tax benefit only if they exceed
the taxpayer’s standard deduction.
2. Tax Drill
Identify Deductions For and From AGI
Indicate whether each of the following items is a “Deduction for AGI” or a “Deduction from AGI”.
a. The deduction for part of the self-employment tax paid by a self-employed taxpayer.
b. The deductions attributable to property held for the production of rents and royalties.
c. The deduction for personal casualty losses incurred in a federally declared disaster.
d. The deduction for contributions to qualified charitable organizations.
e. Deduction for student loan interest.
3. Tax Drill
Indicated whether the following statements are “True” or “False” regarding employment
a. An employee may deduct unreimbursed employment-related transportation expenses as an itemized
b. Transportation expenses include only the cost of transporting the employee from one place to another
c. Usually commuting between home and one’s place of employment
is a business, deductible expense.
4. Tax Drill
Standard Mileage Method
In 2019, Britt drove her automobile 16,200 miles for business. She incurred $900 in gas expenses and $235
in tolls associated with the business mileage.
Assuming Britt uses the standard mileage method, her deduction is $9,631.
5. Tax Drill
Dividends and Interest Exclusions
Indicate whether the following statements are “True” or “False” regarding