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  3. Fundamentals of Taxation 2017
  4. Quiz 5: Itemized Deductions

Which of the Following Types of Taxes Are Deductible on Schedule

Question 85
Multiple Choice

Which of the following types of taxes are deductible on Schedule A in 2016? A)Personal property taxes. B)Local real estate property taxes. C)Only personal property taxes and local real estate taxes. D)FICA taxes.

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Shirin resides in a state that imposes a tax on income.The following information relates to Shirin's state income tax situation for 2016: Assuming she elects to deduct state and local income taxes,what amount should Shirin use to calculate itemized deductions for her 2016 federal income tax return? A)$5,250. B)$5,950. C)$3,600. D)$0.
Q 87
For the year ended December 31,2016,Sheniqua,a single professional,reported the following: Net investment income from interest,$14,000 Other expenses unrelated to the generation of interest,$6,000 Investment interest expense on funds borrowed in 2015 to purchase stocks and bonds,$15,000 What is the maximum amount that Sheniqua can deduct in 2016 as investment interest expense? A)$14,000. B)$6,000. C)$15,000. D)$8,000.
Q 88
What is the maximum amount of home equity indebtedness on which interest is fully deductible? A)$100,000. B)$200,000. C)$0. D)$50,000.
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