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What amount may be claimed as an itemized deduction for 2016?

What amount may be claimed as an itemized deduction for 2016?

1.A single taxpayer has 2016 modified AGI of $227,000 which includes $31,500 of net investment income. The taxpayers net investment income (NII) tax is:a.$1,197b.$171c.$0d.$1,026e.$4,7252.Currently, a taxpayer receiving an annuity applies the exclusion ratio only until his or her investment has been recovered.TrueFalse3.If a group term insurance plan does not discriminate in favor of certain key employees, how much must the key employee include in income?a)The actual premium paid by the employerb)The lesser of the actual premium paid or the amount of the uniform premiums tablec)The amount calculated from theuniform premiums table for coverage in excess of $50,000d)The greater of the actual premium paid or the amount of the uniform premiums table4.Prizes and awards are normally excluded from income because they are really gifts.TrueFalse5.Joshua (single, age 30) was seriously ill by an unusual condition inDecember 2016. During the month ofDecember 2016 Joshua paid $25,000 for medical bills for his illness because his insurance company would not pay for his treatment. In February 2017, Joshua filed his 2016 tax return which included an itemized deduction for $10,000 for medical expenses not reimbursed by the insurance company. His Adjusted Gross Income was too high to take all $25,000 as an itemized deduction.In May 2017, Joshua received a check in the amount of$25,000 from his insurance company representing the full reimbursement of the amount he paid in 2016. What is the tax implication (if any) for Joshua?6.Sarah, a cash basis taxpayer, practices law as an employee of a firm whereshe earns an annual salary of $200,000. She receives the followingFMV fair market value)fringe benefits from her employer (a mfg. co.) this year:Personal use of copying machine? 12Employer provided parking?2,900Personal letters typed? ? 16Membership in the U-R-Fit Athletic Club? 500Personal use of the firms beach cottage? 700Transit pass to commute to work? 1,500What amount related to the receipt of these fringe benefits must be included in Sarahs gross income?a.$500b.$1,200c.$1,228d.$4,9287.Tom owns a home without a mortgage. Tom obtains a Home Equity Loan in the amount of $80,000 and uses the proceeds to purchase a new car for personal use. Can Tom deduct theinterest on the Home Equity loan as qualified interest? Yes No8.Lisa receives the following interest amounts during the 2016.Interest on refund of federal income tax for?$520 a prior year.Interest on award for personal injuries sustained? 460 in an automobile accident last year.Interest on municipal bonds? 900Interest on US Treasury bonds? ? 650How much should she report as gross income?a. $0b. $520c. $1,630 d. $2,530 e. $1,1709.Lane receives the following compensation and benefits during 2016.Salary? $60,000Overtime bonus? 12,000Value of medical insurance coverage?5,000Medical insurance reimbursements?3,000 Total? $80,000What amount is included in Lanes current year taxcomputation?a.$60,000b.$72,000c.$77,000d.$80,00010.The Starks own a home in New York. In 2016 the home was damaged in a windstorm. The Starks file a joint tax return. The Starks did not have insurance. Theiradjusted gross income for 2015 is $100,000. The windstorm caused $10,200 in damage. What amount may be claimed as an itemized deduction for 2016?11.During the year, Larry sustained a serious personal injury in the course of employment. As a result of the injury, he received the following payments during the year.?Damage award based upon loss of income?$7,000?Workers Compensation??$4,500?Reimbursement from Larrys? Employers health insurance? Plan for medical expenses paid? by Larry.??$2,000?Damage awardfor physical injuries??$5,000What is the amount to be included in Larrys gross income for the current year?a.$6,500b.$7,000c.$9,500d.$ 0e.$11,50012.Kathleen has unreimbursed employee expenses during 2016 in the amount of $2,200.Kathleen has adjusted gross income of $100,000. Assuming that Kathleen deductions will exceed the standard deduction compute the amount that Kathleen is entitled to deduct as an itemized deduction for the unreimbursed employee expenses.13.Mary is age 65 and blind and single. What is the amount of the standard deduction for 2016???Marys Standard deduction for 2016 is $_________14.Colleen purchased an annuity on January 1, 2016 for the amount of $10,000. The insurance agent advised her that she would receive a total of $200 per month for a total of $24,000 based on her life expectancy.What amount may Colleen exclude (if any) from her 2016 income?15.For persons with higher income, it is possible that their social security benefitsmay be 100% taxable. T F16.Paul is single, age 33, and has adjusted gross income of $70,000. Hispotential itemized deductions areas follows:?Medical Insurance Premiums$6,000Charitable contributions2,000Medical Expenses not covered by insurance5,000Property taxes on a second home7,500Interest on home mortgage and property taxes on residence6,800State income tax2,200State Sales tax?1,200Calculate Pauls taxable income:17.?Mary is age 65 and blind. What is theamount of theMarys personal exemption for 2016??Marys exemption for 2016 is $ ___________18. Evan and Eileen Carter are husband and wifeand file a joint return for 2016. Both are under 65 years of age. They provide more than half of the support of their daughter, Pamela (age 27), who is a full-time medical student and lives at home.Pamela did not work andhas no other income. They also furnish all of the support of Belinda (Evans grandmother), who is age 90 and lives in a nursing home.In addition, they also support Peggy (no income) and her daughter Susan (age 12) who arefriends of the family and lived with them all year.How many personal and dependency exemptions may the Carters claim?a.Two.b.Three.c.Four.d.Five.e.Six.19.?During 2016, Marvin (age 63) had the following transactions. Salary$370,000Interest income on City of Denver bonds2,000Inheritance from uncle40,000Life insurance proceeds5,000Social Security 20,000Marvins Adjusted Gross Income for 2016 is:a.$437,000b.$434,000c.$387,000d.$392,000e.$390,00020. Calculate the amount the amount of itemized deductions for 2016 for Mr.Drake (age 35) whose AGI is $150,000:Medical Insurance premiums $15,600State income taxes 3,900Real Estate Taxes 5,000Interest on Home Mortgage 18,000State Sales taxes 4,000Charitable contributions 2,000Unreimbursed business expenses 3,100The total itemized deductions for Mr. Drake are$__________
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1. A single taxpayer has 2016 modified AGI of $227,000 which includes $31,500 of net investment income. The taxpayers net investment income (NII) tax is:
a. $1,197
b. $171
c. $0
d. $1,026
e. $4,725 NIIT = $ 31,500 x 3.80% = $ 1,197 2. Currently, a taxpayer receiving an annuity applies the exclusion ratio only until his or her investment has been recovered.
True
False 3. If a group term insurance plan does not discriminate in favor of certain key employees, how much must the key employee include in income?
a) The actual premium paid by the employer
b) The lesser of the actual premium paid or the amount of the uniform premiums table
c) The amount calculated from the uniform premiums table for coverage in excess of $50,000
d) The greater of the actual premium paid or the amount of the uniform premiums table 4. Prizes and awards are normally excluded from income because they are really gifts.
True
False