Individuals failing the dependency test because of too much income still

Individuals failing the dependency test because of

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False. Individuals failing the dependency test because of too much income still qualify for the medical 9. expense deduction. False. Medical insurance payments are those payments that are made to provide insurance to cover 10. deductible medical expenses. False. It is 16.5 cents per mile. 11. False. All are disallowed. 12. True. 13. False. Sales taxes are only deductible through 2009. 14. True. 15. True. 16. False. Inheritance and gift taxes (and sales taxes after 2009) are not deductible. 17. False. Federal income taxes are not deductible. 18. True. 19. False. These points represent interest and are deductible. 20. True. 21. True. 22. False. Interest is only deductible if paid by the borrower. 23. True. 24. False. Value of services is not deductible as a charitable contribution. 25. False. In order to be allowed the full charitable deduction one must not accept the ticket. 26. True. 27. True. 28. True. 29. False. It is deductible in the year paid. 30. True. 31. True. 32. False. Individual taxpayers can deduct these losses as itemized deductions. 33. False. They are deductible in the year of the loss. 34. False. They are deducted in the year discovered. 35. True. 36. True. 37. False. The expense must be directly related to the performance of the employee’s duties. 38.
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512CCH Federal Taxation—Basic PrinciplesChapter 8 ©2010 CCH. All Rights Reserved.
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513Testbank©2010 CCH. All Rights Reserved. Chapter 8ANSWERS TO MULTIPLE CHOICE QUESTIONS—CHAPTER 8c. All the medical expenses are deductible but they must be reduced by 7.5% of the adjusted gross income.42. Total medical expenses $8,830Less: 7.5% of AGI 4,500Medical expense deduction $4,330a. All the medical expenses are deductible but they must be reduced by 7.5% of the adjusted gross income. 43. Total medical expenses $5,700Less: 7.5% of AGI 3,750Medical expense deduction $1,950c. The amount that must be included in income is the lesser of the reimbursement or the excess itemized 44. deductions for the previous year. c. Unnecessary cosmetic surgery will not qualify for the medical expense deduction. 45. c. The cigarette tax is considered a penalty and is nondeductible. 46. a. John is eligible to deduct the personal property taxes paid ($520) and the state income taxes paid 47. ($5,000). He is not eligible to deduct the state sales tax paid ($3,800) because it did not exceed the amount of state income tax paid. The other taxes and the fine are not deductible expenses.b. State sales taxes, gasoline taxes, and dog licenses are not deductible taxes. The real estate taxes paid for 48. Mrs. Brown’s mother are not deductible by the Browns since it is not a tax that they incurred. d. Social security taxes, assessments, penalty on tax underpayment, and a flat automobile registration fee 49.
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