al maple choice problems 11 sample of multiple choice problems is provided below. Additional multiple choice are available at money-education.com by accessing the Student Practice Por 1. control his condition. of to install the pool, AGI for the year is ct as a medical expense of his other health insurance costs were covered Ryan, age 66, has a severe asthmatic condition, and his physician recommended that he a lap pool in his home so that he can swim regularly, which should help control hi Ryan has a friend who is a real estate agent, and strongly advised him not to in since pools depress the market value of homes in the area. If Ryan's ACL $100,000 how much of the cost of the lap pool can Ryan actually deduct as a me if it cost him $9.500 to install the pool and all of his other health insurance by his health insurance policy? The value of the house did not change due to the pa a. $0. b. $2,000 as an itemized deduction. c. $4,500 as an itemized deduction. d. $12,000 as an adjustment to income. 2. In June of this year, Kelly purchased her first home. The price of the house was $260.000.- she financed the purchase with a 30-year, $200,000 mortgage. Since she plans on staying in the home for quite a while, and she expects interest rates to rise in the future, she paid $4.000 in points to receive a lower interest rate on the loan. As of the end of the year, Kelly had paid $7,614 in interest on the loan by making her monthly installment payments. How much! should she claim as mortgage interest on her itemized deductions this year! a. $7,614. b. $7,747 c. $9.614. d. $11,614. 3. Ryan's AGI this year was $100,000. He inherited a large amount of money from the estate of his grandfather, and is very charitably inclined. A recent earthquake devastated several cities on the West Coast, and Ryan wanted to assist in getting the people affected back on their feet. He gave a $75,000 donation to the Red Cross, which is spearheading relief efforts in the region. How much of the contribution can Ryan deduct on his income tax return this year! a. $20,000. b. $30,000. c. $60,000. d. $75,000. chapter 4. Brendan is a tax attorney also very charitably indi Friends of Animals group recer form a new charitable organi created the organization ar charges $5,000 to perform the IRS of $500, but he yo attorney who specializes in intergenerational wealth transfer planning. He is inclined, and sits on several charitable boards. A local animal shelter and Group recently decided to work together on joint goals, and decided to ble organization, which meets the definition of a public charity. Brendan nization and received exempt determination status from the IRS. He usually perform this service, plus the exempt determination letter fee charged by 00 but he volunteered for this activity since his wife will be on the board. e not reimbursed for the expenses he incurred. Assuming that his AGL and base is $150,000, how much can Brendan deduct for income tax purposes? contribution base is $150. a. $0. b. $500. c. $2,750. d. $5,500. Jennifer, a college student, had her car recently broken into. The perpetrators caused $800 in damage to her car, and stole a camera with a fair market value of $700 that was originally purchased for $1,500. Jennifer's AGI for the year is $8,000. How much can Jennifer claim as a casualty loss deduction on her income tax return this year? a. $0. b. $600. c. $700. d. $1,400
