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Wednesday, December 7, 2016

Accounting 3220 Chapter 7

QI:7-7
Bill, a plant manager, is suffering from a serious ulcer. Bill's doctor recommends that he spend three weeks fishing and hunting in the Colorado Rockies. Can Bill deduct the costs of the trip as a medical expense?


QI:7-9
What is the limit placed on medical expense deductions? When can a deduction be taken for medical care? What if the medical care is prepaid?


QI:7-10


QI:7-11
If Susan overpays her state income tax because of excess withholdings, can she deduct the entire amount in the year withheld? When Susan receives a refund from the state how must she treat that refund for tax purposes?


QI:7-14


QI:7-26
For individuals, what is the overall deduction limitation on charitable contributions? What is the limitation for corporations?


QI:7-28
How are charitable contribution deductions reported on the tax return for individuals? What reporting requirements must be met for the contribution of property?


QI:7-29
List some of the more common miscellaneous itemized deductions and identify any limitations that are imposed on the deductibility of these items.


QI:7-30
Other than the % limitation placed on medical expenses, the 10% reduction for casualty losses on personal property, the 2% reduction applied to certain miscellaneous itemized deductions, and the fact that itemized deductions are only deductible if they exceed the standard deduction, are there any other limitations or reductions applied to itemized deductions for individuals?


PI:7-35
Angela is single and has no dependents. For the​ year, her salary is $61,000. She pays $500 in medical and dental insurance​ premiums, which is withheld from her paycheck on an​ after-tax basis, $3,350 in mortgage interest on her​ home, and $1,220 in interest on her car loan. Her health insurance provider reimburses her for $9,700 of the medical expenses.



PI:7-50
During 2016​, Dean incurs the following deductible​ expenses: $1,400 in state income​ taxes, $2,900 in local property​ taxes, $3,400 in medical​ expenses, and $2,100 in charitable contributions. Doug is​ 33, single, has no​ dependents, and has $48,000 AGI for the year.


PI:7-54
In each of the following independent cases, determine the amount of the charitable contribution and the limitation that would apply. In each case, assume that the donee is a qualified public charity.


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