Maintain or improve skills required in a present job

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maintain or improve skills required in a present job or to meet expressed requirementsof an employer or applicable law to retain an employment position or rate ofcompensation. However, even though either of these two requirements are met,education expenses still are not deductible if the education is necessary to meetminimum education requirements of the individual taxpayer's trade or business, or theeducation qualifies the individual for a new trade or business. Through 2014, up to$4,000 of qualified higher education expenses can be deducted for AGI.
ANSWERS TO PROBLEMS—CHAPTER 8Topical List of Problems24.Medical Expenses: Nondependent Parent (¶8001)25.Medical Expenses: Capital Improvements (¶8025)26.Medical Expense Computation (¶8035, ¶8045, ¶8055, ¶8065)27.Medical Expense Computation (¶8035, ¶8045, ¶8055, ¶8065)28.Property Taxes (¶8105)29.Tax Expenses Deduction (¶8115)30.State Income Tax Refund (¶8115)31.Prepaid Interest (¶8265)32.Qualified Student Loan Interest (¶8210)33.Qualified Student Loan Interest (¶8210)34.Interest Expense Deduction (¶8205, ¶8215, ¶8225)35.Interest Expense Deduction (¶8205, ¶8210, ¶8215, ¶8225)36.Qualified Residence Interest Deduction (¶8215)37.Investment Interest Deduction (¶8225)38.Prepaid Interest (¶8265)39.Charitable Contributions Deduction: Pledges (¶8315)40.Charitable Contributions Deduction Computation (¶8315, ¶8325)41.Charitable Contributions Deduction Computation (¶8315, ¶8325)42.Charitable Contributions Deduction Computation (¶8315, ¶8325)43.Charitable Contributions Deduction Computation (¶8315, ¶8325)44.Casualty and Theft Losses (¶8501, ¶8525)45.Casualty Losses (¶8501)46.Casualty Losses (¶8501)47.Casualty Losses (¶8501)48.Reimbursed Employee Expenses (¶8603)49.Job-Seeking Expenses (¶8655)50.Multiple Choice—Charitable Contribution (¶8325)51.Multiple Choice—Unreimbursed Employee Expenses (¶8605)52.Multiple Choice—Employee Reimbursed Expenses (¶8603)©2015 CCH Incorporated. All Rights Reserved.Chapter 8
12CCH Federal Taxation—Basic Principles53.Multiple Choice—Employee Reimbursed Expenses (¶8603)54.Comprehensive Problem—Taxable Income Computation55.Comprehensive Problem—Taxable Liability Computation56.Research Problem—Medical Expenses57.Research Problem—Travel DeductionsAnswers to ProblemsMedical Expenses: Nondependent Parent24.Oliver is able to claim the medical expenses paid for his father. The gross incomedependency test is waived for the medical expense deduction.Medical Expenses: Capital Improvements25.The medical deduction for the elevator is $12,000.Cost of elevator$15,000Less: Increase in fair market value of related property3,000Medical expense deduction$12,000Medical Expense Computation26.The medical expenses of the mother are included among Tom andShannon's medical expenses.Medicines and drugs$1,800Insurance4,000Hospital3,200Doctor4,200Cosmetic surgery (unnecessary)0Mileage (400 × $.23)92Total medical expenses$13,292Less 10% AGI8,500Medical deduction$ 4,792Medical Expense Computation27.Medicines and drugs$1,800Insurance4,000Other medical (after reimbursement) ($7,492 - 4,100)3,392Total medical$9,192Less 10% AGI8,500©2015 CCH Incorporated. All Rights Reserved.Chapter 8
13Instructor’s ManualMedical deduction$ 692Property Taxes28.Assuming it is not a leap year, Blake will be entitled to the property tax allocable to 181

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