$1.$ngel was in an accident and required cosmetic surgery for injuries to his nose. He also had the doctor do additional surgery to reshape his chin, which had not been injured. Will the cosmetic surgery to $$ngel$$s nose qualify as a medical expense? Will the cosmetic surgery to $$ngel$$s chin qualify as a medical expense? Explain.

$2.$ Jerry and Elaine are comparing their tax situations. Both are paying all of the nursing home expenses of their parents. Jerry can include the expenses in computing his medical expense deduction, but Elaine cannot. What explanation can you offer for the difference?

$3.$ Commercial Bank has initiated an advertising campaign that encourages customers to take out loans secured by their home to pay for purchases of automobiles. Are there any tax advantages related to this type of borrowing? Explain.

$4.$ Thomas purchased a personal residence from Monique. To sell the residence, Monique agreed to pay $$5,500$ in points related to Thomas$$s mortgage. Discuss the deductibility of the points.

$5.$ Mike purchased four $$100$ tickets to a fund$-$raising dinner and dance sponsored by the public library, a qualified charitable organization. In its advertising for the event, the library indicated that the cost of the tickets would be deductible for Federal income tax purposes. Comment on the library$$s assertion.

$6.$ Critical Thinking

Planning

$8$ William, a high school teacher, earns about $$50,000$ each year. In December $2023,$ he won $$1,000,000$ in the state lottery. William plans to donate $$100,000$ to his church. He has asked you, his tax adviser, whether he should donate the $$100,000$ in $2023$ or $2024.$ Identify the tax issues related to William$$s decision.

$7.$ Donna donates stock in Chipper Corporation to the American Red Cross on September $10,2023.$ She purchased the stock for $$18,100$ on December $28,2022,$ and it had a fair market value of $$27,000$ when she made the donation.

a$.$ What is Donna$$s charitable contribution deduction?

b$.$ Assume instead that the stock had a fair market value of $$15,000($rather than $$27,000)$ when it was donated to the American Red Cross. What is Donna$$s charitable contribution deduction?

c$.$ What documentation should you request from Donna to confirm the amount of her charitable contribution deduction?

$8.$ Alicia sold her personal residence to Rick on June $30$ for $$300,000.$ Before the sale, Alicia paid the real estate tax of $$4,380$ for the calendar year. For income tax purposes, the deduction is apportioned as follows: $$2,160$ to Alicia and $$2,220$ to Rick. What is Rick$$s basis in the residence?