Which of the following state and local taxes are deductible on a federal income

Which of the following state and local taxes are

  • Notes
  • BrigadierIronBarracuda9181
  • 18
  • 100% (4) 4 out of 4 people found this document helpful

This preview shows page 9 - 12 out of 18 pages.

Which of the following state and local taxes are deductible on a federal income tax return in 2010? 76. State income taxes$ 9,100State sales taxes1,500Local property taxes2,100Local income taxes1,000Total taxes$13,700John Jones incurred the following interest items for 2010: 77. Interest on qualified education loans$2,500Interest on machine used in business$1,200Interest on personal residence8,000Interest on personal credit card purchases600Interest on investments20,000He earned $3,000 in investment income from the investments. What is his itemized interest deduction? Which of the following interest expenses are deductible on a federal income tax return for 2010? 78. Interest on personal loan$4,000Interest on a car loan2,000Interest on a home mortgage9,000Interest on a home equity loan3,000Total interest expenses$18,000Carl Craft’s adjusted gross income is $80,000. He gave $8,000 cash to his church. He also donated land 79. with a fair market value of $60,000 to Cleveland State University. The land had cost Carl $30,000 in 1958. Finally, he contributed $6,000 to a private scholarship foundation to which the 20 percent limitation applies. Carl does not elect the optional reduction of the land contribution. What is Carl’s charitable contribution deduction for the year? John Jones has adjusted gross income of $50,000. During 2010, John contributed $6,000 in cash to his 80. church and stock with a fair market value of $40,000 to the girl scouts. The stock had cost John $36,000. (a.) What is John’s charitable contribution deduction for 2010? (b.) If John elects the optional reduction of the stock contribution, what would be his charitable contribution deduction for 2010?
Background image
81. the time for business and 30 percent for pleasure was totally destroyed in an accident. The car had a fair market value of $26,000 before the accident, which was less than the car’s adjusted basis. Jim received only $2,000 as a recovery from his insurance company. His adjusted gross income is $48,000. What is the amount of the personal casualty loss deduction that Jim can report as an itemized deduction for the year? In 2010, Larry Jones was involved in a collision which totally destroyed his car. The automobile, which 82. cost $24,000 and had a fair market value of $10,200 right before the accident, was used solely for personal use. The car had no value after the accident. Assuming that Larry had adjusted gross income of $70,000 and carried no collision insurance, what amount can he deduct as a net casualty loss for the year? In 2010, Philip Carlton’s sailboat is destroyed by high winds during a storm. The fair market value of 83. the vessel immediately before the loss is $6,000. Philip’s adjusted gross income for the year is $56,000. Compute Philip’s casualty loss for the year.
Background image
511Testbank©2010 CCH. All Rights Reserved. Chapter 8ANSWERS TO TRUE-FALSE QUESTIONS—CHAPTER 8True. 1.
Background image
Image of page 12

You've reached the end of your free preview.

Want to read all 18 pages?

  • Fall '12
  • ANYONE
  • Taxation in the United States, fair market value

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes