Question :
41. Which of the following not an itemized deduction?
a. Medical expenses
b. IRA contribution : 1313545
41. Which of the following is not an itemized deduction?
a. Medical expenses
b. IRA contribution deduction
c. Personal property taxes
d. Union dues
e. All of the above are itemized deductions
42. During 2014, Mr. and Mrs. West paid the following taxes:
Property taxes on residence$1,800
Special assessment for installation of a sewer system in their neighborhood$1,000
State personal property tax on their automobile (based on value)$ 800
Property taxes on land held for long-term appreciation$ 500
What amount can the Wests deduct as property taxes in calculating itemized deductions for 2014?
a. $1,300
b. $1,800
c. $3,100
d. $4,100
e. None of the above
43. Margo has $2,100 withheld from her wages for state income taxes during 2014. In March of 2014, she paid $400 in additional taxes for her 2013 state tax return. Her state income tax liability for 2014 is $2,600 and she pays the additional $500 when she files her 2014 state tax return in April of 2015. What amount should Margo deduct as an itemized deduction for state income taxes on her 2014 federal income tax return, assuming she elects to deduct state and local income taxes?
a. $2,100
b. $2,500
c. $2,600
d. $3,000
e. None of the above
44. During 2014, Seth, a self-employed individual, paid the following taxes:
Federal income tax$5,000
State income tax$2,400
Real estate taxes on land in South America (held as an investment)$ 900
Personal property taxes based upon value$ 900
Federal self-employment tax$ 800
What amount can Seth claim as an itemized deduction for taxes paid during 2014, assuming he elects to deduct state and local income taxes?
a. $2,400
b. $3,300
c. $4,200
d. $5,000
e. None of the above
45. During 2014, George, a salaried taxpayer, paid the following taxes which were not incurred in connection with a trade or business:
Federal income tax (withheld by employer)$1,500
State income tax (withheld by employer)$1,100
FICA tax (withheld by employer)$ 700
Real property taxes$ 900
Federal auto gasoline taxes$ 300
Federal excise tax on telephone bills$ 50
What amount can George claim for 2014 as an itemized deduction for the taxes paid, assuming he elects to deduct state and local income taxes?
a. $1,100
b. $1,150
c. $1,400
d. $2,000
e. None of the above
46. Which of the following taxes is not deductible as an itemized deduction?
a. Property tax on second residence
b. Sales tax in a state with no income tax
c. Federal income tax
d. State income tax
47. Frank is a resident of a state that imposes a tax on income. The following information pertaining to Frank’s state income taxes is available:
State income taxes withheld in 2014$3,500
Refund of 2012 tax received in 2014$ 400
Deficiency assessed and paid in 2014 for 2012:
Tax$ 600
Interest$ 100
What amount should Frank use as state and local income taxes in calculating itemized deductions for his 2014 Federal tax return, assuming he elects to deduct state and local income taxes?
a. $3,500
b. $3,700
c. $4,100
d. $4,200
e. None of the above
48. Which one of the following is not tax deductible?
a. Real estate taxes
b. Property taxes
c. Local income taxes
d. State income taxes
e. All of the above are tax deductible
49. Weber resides in a state that imposes a tax on income. The following information relating to Weber’s state income taxes is available:
State income taxes withheld in 2014$3,000
Refund received in 2014 of 2013 tax$ 300
Assessment paid in 2014 of 2012 tax$ 500
Assuming he elects to deduct state and local income taxes, what amount should Weber use as state and local income taxes in calculating itemized deductions for his 2014 Federal income tax return?
a. $2,700
b. $3,000
c. $3,500
d. $3,800
e. None of the above
50. Harvey itemized deductions on his 2013 income tax return. Harvey plans to itemize deductions again in 2014 and the following information is available regarding state and local income taxes:
Taxes withheld in 2014$2,500
Refund received in 2014 of 2013 tax$ 500
Assessment paid in 2014 of 2012 tax$ 300
Assuming he elects to deduct state and local income taxes, the above information should be reported by Harvey in his 2014 tax return as:
a. Itemized deduction for state and local income taxes of $2,500, and income from state and local tax refund of $200
b. Itemized deduction for state and local income taxes of $2,300
c. Itemized deduction for state and local income taxes of $2,800
d. Itemized deduction for state and local income taxes of $2,800 and income from state and local tax refund of $500
e. None of the above
