1. What is a taxpayer's AGI limitation for cash contributions made to a 50% limit organization in 2022? a) 60% b) 100% c) 50% d) 30% 2. Tracy bought a home and had to pay points as part of the settlement expenses. Points can be called all the following except: a) Loan origination fees b) Prepaid mortgage payments c) Loan discounts d) Loan placement fees and discount points 3. Michael paid the following taxes during the year. What is the total tax amount Michael will be allowed to deduct on Schedule A, line 7? Real estate taxes: State income taxes: $3,500 $5,850 Personal property tax on his vehicle: $ 580 a) $22,180 b) $10,180 c) $22,000 d) $10,130 Federal income taxes: Foreign taxes (Sch. A): Vehicle license fee: 4. Randy is the proud owner of a new home. For Randy to be able to include the mortgage interest in his itemized deductions, the home must be either his main home or his second home. Which of the following is an exception to the basic living accommodations required of a main home for purposes of deductible mortgage interest? a) Permanent foundation b) Sleeping facilities c) Toilet facilities d) Cooking facilities 5. Investment interest deduction is limited by all the following except: a) Interest from a savings account b) Stock dividends c) Wages d) Stock sales berziseb $12,000 $ 200 $ 50 16

6. Shannon has investment expenses of $1,354 that she wants to deduct on Schedule A. Her income for the year is listed below. Determine the amount of Shannon's investment interest deduction. a) $477 b) $200 c) $324 d) $1,354 7. Sarah makes significant cash and noncash charitable contributions each year. Which of the following would not be a deductible charitable contribution? a) Canned goods donated to a food bank b) Tithes donated to a church c) Money donated for a child who needs a heart transplant d) Clothing donated to the Salvation Army 8. Audrey made the following contributions during the year: Audrey volunteered at the local homeless shelter during the year. She worked for an hour per day Monday through Friday and eight hours on Saturday. Audrey worked a total of 279 days during the year. She was required to purchase uniforms that cost $215, and she wore safety shoes (required by the shelter) that cost $65. Audrey traveled five miles each way to get to the homeless shelter. Audrey's AGI is $200,000. What is Audrey's charitable contribution deduction amount for the tax year? a) $5,839 b) $6,119 c) $5,619 d) $6,510 9. The Watsons suffered a fair amount of home and property damage throughout the year. Which of the following would be an eligible casualty for loss deductions? a) Damage caused to a house destroyed by fire b) Damage caused by a hurricane in a federally declared disaster area c) Damage caused by a tornado d) Damage caused by flooding 16. Frank paid federal estate taxes on income from his deceased mother's return because he was the beneficiary, and it was not included in his mother's final return. As a result, Frank can do which one of the following? a) Do nothing; just report the income and pay the taxes b) Deduct the taxes on his mother's return the following year c) Deduct the taxes on the estate tax return d) Deduct the taxes paid on Schedule A, line 16 17. Joan paid the following expenses the year her son died. Which expenses can she deduct in respect of a decedent (IRD)? a) Burial expenses b) Medical expenses paid within 12 months of death c) Prescriptions purchased from india d) A trip to a dry climate suggested by her son's doctor to aid his general health. 18. Joseph can deduct all the following expenses on Schedule A except. a) Charitable contributions b) Federal income tax in respect of a decedent c) Malpractice insurance premiums d) Gambling losses to the extent of gambling winnings 19. Each of the following is true regarding bond premiums except: a) The excess bond premium is the amount paid that exceeds the stated principal amount. b) Amortized bond premiums cannot be deducted on Schedule A. c) The amount deducted reduces the basis in the bond. d) Bond premiums are reported on Form 1099-INT. 20. All the following items can be deducted on a decedent's final return except: a) Personal credit card interest b) Medical expenses paid within a year of death c) Unrecovered costs from a pension or annuity d) Gambling losses to the extent of gambling winnings 21. Letty is preparing the final return for one of her clients. Which of the following expenses can be deducted on Schedule A? a) Union dues b) Federal estate tax paid on income in respect of a decedent (IRD) c) Depreciation on a home computer d) Miles driven for work travel before death. 22. Last year, Daniella bought her first home. When she received Form 1098 from her mortgage company. she saw it included real estate taxes that were paid out of her escrow account. Which of the following statements regarding real estate taxes on a home is correct? a) Real estate taxes are deductible by the person paying the tax, even if the payer is not the property owner. b) Real estate taxes are deductible on IRS Form 1040, Schedule C. c) Real estate taxes are not deductible if they were paid from escrow. d) Real estate taxes are deductible on Schedule A (Form 1040) only if the taxpayer is the property owner and paid the taxes. 1. What is a taxpayer's AGI limitation for cash contributions made to a 50% limit organization in 2022 ? a) 60% b) 100% c) 50% d) 30% 2. Tracy bought a home and had to pay points as part of the settlement expenses. Points can be called all the following except: a) Loan origination fees b) Prepaid mortgage payments c) Loan discounts d) Loan placement fees and discount points 3. Michael paid the following taxes during the year. What is the total tax amount Michael will be allowed to deduct on Schedule A, line 7? a) $22,180 b) $10,180 c) $22,000 d) $10,130 4. Randy is the proud owner of a new home. For Randy to be able to include the mortgage interest in his itemized deductions, the home must be either his main home or his second home. Which of the following is an exception to the basic living accommodations required of a main home for purposes of deductible mortgage interest? a) Permanent foundation b) Sleeping facilities c) Toilet facilities d) Cooking facilities 5. Investment interest deduction is limited by all the following except: a) Interest from a savings account b) Stock dividends c) Wages d) Stock sales 10. In 2022, Austin's house was robbed, and all his jewelry and stereo equipment was stolen. It has not been recovered. Austin did not have renter's insurance. He purchased the stereo equipment for $1,375, and the fair market value of the equipment was $1,000 at the time of the theft. He bought the jewelry for $1,500, and the fair market value of the jewelry was $1,500 at the time of the theft. Austin's AGI is $39,750. The theft took place on July 4,2022 . What is Austin's deductible casualty loss amount? a) $2,500 b) $2,875 c) $2,400 d) $ o 11. Frank takes several gambling trips each year and must report the results on his tax return. A taxpayer should keep records containing information regarding gambling winnings and losses. All the following information should be recorded except. a) The date and type of the specific wager or wagering activity b) The name and address or location of the gambling establishment c) The names of other persons present with the taxpayer at the gambling establishment d) The name of the hotel at which the taxpayer was staying 12. Janice won $2,500 from the lottery on March 17. She won $250 more on June 19. Janice spent a total of $1,800 on lottery tickets during the year. After Janice won the lottery, her friend, Agnes, gave her $135 in lottery tickets that she (Agnes) had purchased during the year. What amount of income must Janice report on her return from gambling winnings? a) $2,750 b) $815 c) $950 d) $0 13. Able and Martha have significant medical expenses to include on Schedule A for this year's tax return. All the following expenses are deductible except a) Medical insurance premiums b) Medical service fees c) Nursing home meals and lodging when the taxpayer is there for nonmedical reasons d) Travel expenses deemed necessary for treatment for alcoholism 14. Between September and December 2022, Henry drove 1,200 miles in total for his outpatient medical treatments. What is Henry's mileage expense if he uses the standard mileage rate? a) $264 b) $168 c) $216 d) $0 15. Ginger and Roger spent $9,000 to make improvements to their home to accommodate Ginger's 90 year-old father, whom they claim as a dependent. These improvements included a wheelchair ramp in the front of the home. The improvements decreased the fair market value of the home by $10,000. How much of the cost of the home improvements will be deductible? a) $0 b) $1,000 c) $10,000 d) $9,000