Question 2 of 73.

Zoya has a first mortgage and a smaller home equity loan. Zoya took out the home equity loan on January 3, 2021. It was not used to build, buy, or improve her home. The equity loan proceeds were used to purchase a new car and pay off credit cards. During the year, she paid $6,350 in interest on her first mortgage and $1,490 in interest on the home equity loan. What amount of mortgage interest can Zoya deduct on her Schedule A (Form 1040), Itemized Deductions?

$1,490

$4,860

$6,350

$7,840

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Question 3 of 73.

Mark paid $255 for the annual registration on his truck. The fee includes:

$50 registration fee.

$5 plate fee.

$200 1% of the assessed value of the vehicle.

What amount may be deductible on Mark's Schedule A (Form 1040), Itemized Deductions, as a personal property tax?

$5

$50

$200

$250

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Question 4 of 73.

Which of these would be fully deductible in 2021 on Schedule A (Form 1040), Itemized Deductions?

Investment interest expense of $800 with investment income of $900.

Investment interest expense of $1,200 with investment income of $1,100.

Investment interest expense of $1,900 with $1,350 in investment income.

Investment interest expense of $1,400 with investment income of $1,500 ($300 of which was from municipal bond interest).

Question 7 of 73.

Danielle purchased a home with her husband, Neville, in March of 2021 for $700,000 in a separate property state. In June of 2021, Danielle and Neville separated. On December 31, they were still legally married but were not living together. Neville refused to file a joint return with Danielle. Danielle is living in the home and has continued to make the mortgage payments. Danielle and Neville have no children. Danielle will be itemizing her deductions. On what portion of the acquisition debt will interest be deductible on Danielle's tax return for 2021?

$0

$350,000

$375,000

$700,000

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Question 8 of 73.

Nimit was reimbursed in 2021 by his insurance company for a medical expense that he had previously deducted on his 2020 Schedule A (Form 1040), Itemized Deductions. What is the tax treatment of the recovered medical expense, in any?

The amount recovered is not taxable and should not be included on the 2021 return.

The amount recovered should be deducted on Schedule A (Form 1040), Itemized Deductions, as a medical expense again in 2021.

The amount recovered should be included in income on the 2021 tax return.

The 2020 return must be amended to remove the medical expense that was recovered.

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Question 2 of 73.

Zoya has a first mortgage and a smaller home equity loan. Zoya took out the home equity loan on January 3, 2021. It was not used to build, buy, or improve her home. The equity loan proceeds were used to purchase a new car and pay off credit cards. During the year, she paid $6,350 in interest on her first mortgage and $1,490 in interest on the home equity loan. What amount of mortgage interest can Zoya deduct on her Schedule A (Form 1040), Itemized Deductions?

$1,490

$4,860

$6,350

$7,840

Mark for follow up

Question 3 of 73.

Mark paid $255 for the annual registration on his truck. The fee includes:

$50 registration fee.

$5 plate fee.

$200 1% of the assessed value of the vehicle.

What amount may be deductible on Mark's Schedule A (Form 1040), Itemized Deductions, as a personal property tax?

$5

$50

$200

$250

Mark for follow up

Question 4 of 73.

Which of these would be fully deductible in 2021 on Schedule A (Form 1040), Itemized Deductions?

Investment interest expense of $800 with investment income of $900.

Investment interest expense of $1,200 with investment income of $1,100.

Investment interest expense of $1,900 with $1,350 in investment income.

Investment interest expense of $1,400 with investment income of $1,500 ($300 of which was from municipal bond interest).

Question 7 of 73.

Danielle purchased a home with her husband, Neville, in March of 2021 for $700,000 in a separate property state. In June of 2021, Danielle and Neville separated. On December 31, they were still legally married but were not living together. Neville refused to file a joint return with Danielle. Danielle is living in the home and has continued to make the mortgage payments. Danielle and Neville have no children. Danielle will be itemizing her deductions. On what portion of the acquisition debt will interest be deductible on Danielle's tax return for 2021?

$0

$350,000

$375,000

$700,000

Mark for follow up

Question 8 of 73.

Nimit was reimbursed in 2021 by his insurance company for a medical expense that he had previously deducted on his 2020 Schedule A (Form 1040), Itemized Deductions. What is the tax treatment of the recovered medical expense, in any?

The amount recovered is not taxable and should not be included on the 2021 return.

The amount recovered should be deducted on Schedule A (Form 1040), Itemized Deductions, as a medical expense again in 2021.

The amount recovered should be included in income on the 2021 tax return.

The 2020 return must be amended to remove the medical expense that was recovered.

Mark for follow up