Income Tax Chapter 5 Homework

Wilma had $3,100 in state income taxes withheld from her paychecks during 2016. In April of 2016, Wilma paid $50 due on her 2015 state tax return. Wilma's total tax liability on her state tax return for 2016 is $2,850. How much should Wilma deduct as an itemized deduction for state income taxes on her 2016 federal income tax return?

$3,150

The cost of which of the following is deductible as a medical expense?

Birth control pills

The cost of which of the following expenses is not deductible as a medical expense on Schedule A, before the 10 percent of adjusted gross income limitation?

Botox treatment to reduce wrinkles around eyes

Which of the following is correct for Qualified Tuition Programs?

Contributions are not deductible, and qualified educational expense distributions are tax free.

Which of the following taxes are not deductible as an itemized deduction:

Federal income taxes

Stanley donates a hotel to a university for use as a conference center. The building was purchased 3 months ago for $1,500,000 and has a fair market value of $1,900,000 on the date the contribution is made. If Stanley had sold the building, the $400,000 difference between the sales price and cost would have been a short-term capital gain. What is the amount of Stanley's deduction for this contribution, before considering any limitation based on adjusted gross income?

$1,500,000

In March of 2016, Thomas makes a $5,000 cash contribution to a public university. In that month, he also donates $20,000 to an organization subject to the 30 percent limitation. Thomas has adjusted gross income for 2016 of $35,000. What is the amount of Thomas's 2016 charitable contribution deduction?

$15,500

Ramon, a single taxpayer, has adjusted gross income for 2016 of $208,000 and his itemized deductions total $19,000. The itemized deductions consist of $11,000 in state income taxes and $8,000 of qualified charitable contributions. What amount of itemized deductions will Ramon be allowed to deduct in 2016?

$19,000

Carrie finished her undergraduate degree using money from a student loan. She earned $36,000 her first year and paid $2,600 in interest. She can take a deduction for student loan interest in the amount of:

$2,500

During 2016, Carl (a single taxpayer) has a salary of $91,500 and interest income of $15,500. Calculate the maximum contribution Carl is allowed for an educational savings account.

$400

Which of the following donations is not deductible as a charitable deduction?

A donation of a taxpayer's time picking up trash on the beach

Which of the following is deductible as interest on Schedule A?

Interest on a loan for a 90-foot yacht (a qualified residence) with a kitchen, 3 baths and 5 bedrooms

Which of the following interest expense amounts is not deductible in the current year?

Investment interest expense of $10,000, assuming the taxpayer has no investment income.

Which of the following taxes may be deducted as itemized deductions for 2016?

Local income taxes

Which of the following is not considered a deductible medical expense?

Toothbrush