Question

Which of the following is TRUE regarding the charitable contribution itemized deduction (ignore any AGI maximums)?

		Frank is allowed to deduct the $100 he gave to a needy person begging outside the grocery store.
		Joe donated land he has owed for several years to a qualified charity (registered with the IRS).  Joe is allowed to take a charitable contribution deduction in the amount of the current value of the land, even though his cost is less than its current value.
		Armondo is a CPA and does accounting work for his church, a qualified charity (registered with the IRS.) He normally would charge $500 for the work but does not charge the church. Armondo can take a $500 charitable donation for his donated services

Which of the following is TRUE regarding the deduction for interest expense:

		Interest paid by taxpayer on her rental property mortgage is deductible as an itemized deduction.
		Interest paid on taxpayer’s visa credit card on debt used to provide funds for taxpayer’s sole proprietorship business is deductible as an itemized deduction.
		All of the interest paid on $1,200,000 of debt used to acquire and secured by taxpayer’s principal residence is entirely deductible as an itemized deduction.
		Points of $2,000 (i.e. pre-paid interest as a loan origination fee of 1% of a $200,000 loan) are currently deductible if the loan is secured by and used to acquire taxpayer’s primary residence

Which of the following is TRUE regarding the deductibility of taxes:

		Federal Income taxes are deductible.
		An employee who has social security tax (FICA) withheld from his/her paycheck (the employee’s portion) is allowed an itemized deduction on his/her personal return for this employee portion.
		Real estate taxes related to a personal residence are deductible as an itemized deduction.
		Property taxes paid on “personal” property (i.e. a car) used exclusively in the taxpayer’s personal life are deductible if it is a fixed fee or based on the property’s weight

Answer 1

1. Joe donated land he has owed for several years to a qualified charity (registered with the IRS).  Joe is allowed to take a charitable contribution deduction in the amount of the current value of the land, even though his cost is less than its current value.

2.Interest paid by taxpayer on her rental property mortgage is deductible as an itemizeddeduction.

3. An employee who has social security tax (FICA) withheld from his/her paycheck (the employee’s portion) is allowed an itemized deduction on his/her personal return for this employee portion.
3.