Question

2. Larry recorded the following donations this year:

$580 cash to a family in need
$2,480 to a church
$580 cash to a political campaign
To the Salvation Army household items that originally cost $1,280 but are worth $380.
What is Larry's maximum allowable charitable contribution if his AGI is $60,800?

MULTIPLE CHOICE

$3,060

$1,160

$2,860

$4,920

None of the choices are correct

4. Jim was in an auto accident this year. Jim paid $3,880 to repair his personal-use car after the accident and his insurance only reimbursed him $495. Jim bought his car several years ago for $1,550. What is the amount of casualty loss from this accident before Jim applies any casualty loss floor limitations?

MULTIPLE CHOICE

$3,880

$3,385

$1,550

$1,055

None of the choices are correct

5. Fred's employer dispatched him on a business trip from the Dallas headquarters to New York this year. During the trip Fred incurred the following unreimbursed expenses:

Air fare	$1,360
Lodging	810
Meals	660
Cab fare	280

What is the amount of Fred's deduction before the application of any AGI limitations?

MULTIPLE CHOICE

$3,110

$2,780

$2,170

$1,360

$0 THE EXPENSES CANNOT BE DEDUCTED UNLESS FRED IS REIMBURSED.

7. Which of the following is a true statement?

Multiple Choice

A taxpayer’s standard deduction varies based on her medical expenses and charitable contributions.

The standard deduction requires all taxpayers to substantiate and collect information regarding itemized deductions.

A taxpayer’s standard deduction amount may vary with her age.

Bunching itemized deductions is an example of tax planning by income shifting.

None of the choices are true.

9. Which of the following is a true statement?

Multiple Choice

A taxpayer cannot deduct medical expenses incurred for others unless they are members of his immediate family.

A taxpayer can deduct medical expenses incurred for a qualified relative even if the relative does not meet the gross income test.

Deductible medical expenses typically include Botox treatments and other cosmetic procedures incurred to enhance a taxpayer’s appearance.

Deductible medical expenses do not include long-term care services for disabled spouses and dependents.

All of the choices are true.

Answer 1

As per policy only first four questions will be answered

Question 2

Answer is option D

cash to a family in need =580

to a church =2480

cash to a political campaign=580

To the Salvation Army household items =1280

Larry's maximum allowable charitable contribution=4920

Question 4

Answer is option 1055

Value of car =1550

Less:amount reimbursed by insurance =495

Casualty loss = 1055

Question 5

Answer is option B 2780

Question 7

Answer is option B A taxpayer’s standard deduction amount may vary with her age.

The standard deduction may vary according to taxpayer's filling status, age and eyesight.