Question :
61. Which of the following not deductible as interest expense Schedule : 1313547
61. Which of the following is not deductible as interest expense on Schedule A?
a. Loan fee charged for appraisal service
b. Home mortgage interest
c. Mortgage interest on a second residence
d. Home mortgage prepayment penalties
e. All of the above are deductible as interest expense
62. Which of the following types of interest is not deductible in 2014?
a. Qualified mortgage interest on residence
b. Qualified mortgage interest on second residence
c. Credit card interest
d. All of the above
e. None of the above
63. Christine saw a television advertisement asking for donations of used vehicles to a charitable foundation and decided to donate her old car. Which of the following statements is correct?
a. She can take a tax deduction large enough on an after-tax basis to equal the amount she would have received if she sold the car directly.
b. She can take a deduction greater than the amount for which the charity actually sells the vehicle.
c. She can claim an estimated value for the auto if the charity uses it rather than selling it.
d. The charity is not required to provide her with any information about what they do with the auto.
64. Which of the following charitable contributions is not tax deductible?
a. Cash donated to a qualified church.
b. Clothing donated to a qualified veterans’ organization.
c. Time donated to a qualified veterans’ organization.
d. Donation of a car to a qualified non-profit organization.
e. All of the above are tax deductible.
65. For 2014, Eugene and Linda had adjusted gross income of $30,000. Additional information for 2014 is as follows:
Cash contribution to church$1,500
Tuition paid to a parochial school$1,200
Contribution to a qualified charity$ 400
Cash contribution to a needy family$ 75
What is the maximum amount that they can use as a deduction for charitable contributions for 2014?
a. $475
b. $1,575
c. $1,900
d. $3,175
e. None of the above
66. Stewart had adjusted gross income of $24,000 in 2014. During the year, he made the following contributions to qualified charities:
?
$8,000 cash
?
1,000 shares of Able Corporation common stock, acquired in 1979 (cost and fair market value of $7,000)
?
Considering the charitable contribution deduction limitation, what amount can Stewart claim as a deduction for charitable contributions in 2014?
a. $7,200
b. $8,000
c. $12,000
d. $15,000
e. None of the above
67. Damage resulting from which of the following would probably not give rise to a casualty loss deduction?
a. Automobile accident
b. Earthquake
c. Flood
d. Rust
e. Fire
68. Which one of the following is not considered a casualty or theft loss for tax purposes?
a. A taxpayer’s car is crushed by a tree during a storm.
b. A taxpayer’s residence is burned down during a wild fire.
c. A taxpayer’s car is destroyed by rust.
d. A taxpayer’s bicycle is vandalized by local teenagers.
e. All of the above are casualty or theft losses.
69. Harris had adjusted gross income in 2014 of $128,000. During the year his personal summer home was almost completely destroyed by a cyclone. Pertinent data with respect to the home follows:
Cost basis$135,000
Value before casualty$147,000
Value after casualty$ 17,000
Harris was partially insured for his loss and in 2014 he received a $113,000 insurance settlement. What is Harris’ allowable casualty loss deduction for 2014?
a. $4,100
b. $4,200
c. $9,100
d. $9,200
e. None of the above
70. Peter is a plumber employed by a major contracting firm. During 2014, he paid the following miscellaneous expenses:
Unreimbursed employee business expenses$450
Union dues$600
Tax return preparation fee$100
Safe deposit box rental fee (used only for personal effects)$ 20
If Peter were to itemize his deductions for 2014, what amount could he claim as miscellaneous itemized deductions (before applying the 2 percent of adjusted gross income limitation)?
a. $100
b. $550
c. $1,070
d. $1,150
e. None of the above
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