17. E is an employee for D Drug Stores. Assuming E itemizes his deductions (i.e. he files Schedule A), which of the following is not deductible as an itemized deduction (ignoring percentage limitations)? a. Property taxes for a house that he owns and rents out. b. Property taxes on his principal residence. c. Mortgage interest expense on his principal residence. d. Medical expenses. Contributions to charity. e. 18. F, wants to buy X, Inc., which is owned by shareholder S. Which of the following statements is generally good tax planning for each party? a. F should be advised to buy the stock in X, Inc. from S. b. X, Inc. should be advised to sell the assets of the corporation to F. c. F should be advised buy the assets of X, Inc. d. S should be advised sell his stock to X, Inc. e. X, Inc. should be advised sell assets to S 19. B, a bank president, is a weekend potter. He regularly sells his pots at crafts fairs and spends an average of ten hours a week either making or marketing pots. Although he has netted around $500 per year for the last two years from pottery sales, he tells everyone that he would do it for free. This year he reported gross income of $300 and material expenses of $1,200. Assuming he treats this activity as a hobby the $1,200 expense is, most likely, a. deductible for A.G.I. as a business loss. b. theoretically available only to offset the $300 income of the pottery business, but as a miscellaneous deduction it is not deductible in 2021. deductible as a capital loss. d. both b and care true. C. 20. N's wife divorced him in 2018 and he is trying to reduce his taxable income. He sold his personal use car for a $5,000 loss, paid $10,000 interest expense on his credit card for personal expenses, paid alimony expenses of $25,000 this year and child support of $20,000. Based on this information, how much of a deduction can N take either for or from A.G.I. in 2021? a. $15,000 b. $20,000 $25,000 d. $45,000 c