which the following is not allowed as an itemized deduction?

1. Cash donation to a church.2
2. Interest expense on a $800,000 loan incurred in 2016 to buy a principal residence
3. Tax Preparation fees
4. Gambling losses to the extent of gambling winnings.

Paul, a calendar year single taxpayer, has the following information for 2019:

AGI $175,000

State income taxes 18,500

State sales tax 2,000

Real estate taxes 5,500

Gambling losses (gambling gains were $12,000) 9,500

Charitable Contributions - $3,000

Qualified Medical Expenses - $5,800

Pauls allowable itemized deductions for 2019 are:

a. $10,000.

b. $28,300

c. $22,500.

d. $42,300.

3. In 2020, Casey invested $90,000 for a 20% interest in a limited liability company (LLC) in which she is a material participant. The LLC reported losses of $400,000 in 2020 and $175,000 in 2021. Caseys share of the LLCs losses was $80,000 in 2020 and $35,000 in 2021. How much of these losses can Casy deduct?

   1. $80,000 in 2020 $35,000 in 2021.

   2. $85,000 in 2020 $25,000 in 2021.

   3. $0 in 2020 $0 in 2021.

   4. $80,000 in 2020 $10,000 in 2021.

4. Katie sells her personal use automobile for $12,000. She purchased the car three years ago for $25,000. What is Katies recognized gain or loss?

   1. $0

   2. $12,000

   3. ($13,000)

   4. ($25,000)

5. If property is gifted and the donor does not pay any gift tax, then propertys basis in the hands of the donee is:

   1. Zero basis to the donee because he or she did not pay anything for the property.

   2. Has the same basis to the donee as the donors adjusted basis if the donee disposes of the property at a gain.

   3. Has the same basis to the donee as the donors adjusted basis if the donee disposes of the property at a loss, and the fair market value on the date of gift was less than the donors adjusted basis.

   4. Has a zero basis to the donee if the fair market value on the date of gift is less than the donors adjusted basis.