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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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