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Taxation for Decision Makers

Business

Quiz 5 :

Deductions for Individuals and Tax Determination

Quiz 5 :

Deductions for Individuals and Tax Determination

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In 2019 safe deposit box rental fees are deductible as miscellaneous itemized deductions and must exceed two percent of AGI to be deductible.
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True False
Answer:

Answer:

False

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Sales taxes levied on the purchase of depreciable business property are deductible as part of depreciation.
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True False
Answer:

Answer:

True

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Surviving spouse status may be claimed for three years after the year of the spouse's death.
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True False
Answer:

Answer:

False

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The deduction for student loan interest has limits placed on it based on the taxpayer's AGI.
True False
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A legally married couple can elect to file as married filing jointly or single individuals.
True False
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A non-itemizer's standard deduction is phased out at a certain AGI threshold.
True False
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For 2018-2025, the personal and dependency exemption is essentially zero.Although the deduction is suspended, the rules for determining who is a dependent may be used in other provisions (such as determining head of household status and the child tax credit).
True False
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The basic and additional standard deductions are both indexed for inflation.
True False
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Up to $10,000 ($5,000 if married filing separately) of income and real property taxes are deductible for state, local, and foreign real property.
True False
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A homeowner who itemizes his or her deductions can only deduct the property taxes on his or her primary residence and one other residence.
True False
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Health insurance premiums that are deductible as medical expenses include premiums paid pre-tax through a flexible spending account.
True False
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Contributions to health savings accounts are made with before-tax dollars.
True False
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To file as a surviving spouse, a taxpayer must maintain a home for a dependent child for the entire year.
True False
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The tax model is the formula for how individuals report their tax liability.
True False
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An abandoned spouse must only live apart from his or her spouse during the last six months of the tax year.
True False
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A married person filing a separate return has the lowest standard deduction amount.
True False
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Jan and James's divorce is final on December 31 of the current year.They must file married filing separately for the tax year.
True False
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To qualify as head of household, the taxpayer must pay more than half of the costs of a home in which a qualifying person lives for the entire year.
True False
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A taxpayer's filing status determines the basic standard deduction allowed.
True False
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Beginning in 2019, qualified medical expenses for a 66-year-old single individual must exceed 10 percent of AGI to be deductible for regular income tax purposes.
True False
Answer:
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