Under what circumstances can a taxpayer deduct medical expenses paid for a member of his family? Does it matter if the family member reports significant amounts of gross income and cannot be claimed as a dependent?
11. [LO 2] Under what circumstances can a taxpayer deduct medical
expenses paid for a member of his family? Does it matter if the family
member reports significant amounts of gross income and cannot be claimed
as a dependent?
12. [LO 2] What types of taxes qualify to be deducted as itemized deductions? Would a vehicle registration fee qualify as a deductible tax?
13. [LO 2] Compare and contrast the limits on the deduction of interest on home acquisition indebtedness versus home equity loans. Are these limits consistent with horizontal equity? Explain.
14. [LO 2] Explain the argument that the deductions for charitable contributions and home mortgage interest represent indirect subsidies for these activities.
15. [LO 2] {Research} Cash donations to charity are subject to a number of very specific substantiation requirements. Describe these requirements and how charitable gifts can be substantiated. Describe the substantiation requirements for property donations. Chapter 6 – Individual Deductions
16. [LO 1] Describe the conditions in which a donation of property to a charity will result in a charitable contribution deduction of fair market value and when it will result in a deduction of the tax basis of the property.
17. [LO 2] Describe the type of event that qualifies as a casualty for tax purposes.
18. [LO 2] A casualty loss from the complete destruction of a personal asset is limited to the lesser of fair market value or the property’s adjusted basis. Explain the rationale for this rule as opposed to just allowing a deduction for the basis of the asset.
19. [LO 1] {Research} This week Jim’s residence was heavily damaged by a storm system that spread destruction throughout the region. While Jim’s property insurance covers some of the damage, there is a significant amount of uninsured loss. The governor of Jim’s state has requested that the president declare the region a federal disaster area and provide federal disaster assistance. Explain to Jim the income tax implications of such a declaration and any associated tax planning possibilities.
20. [LO 2] Describe the types of expenses that constitute miscellaneous itemized deductions and explain why these expenses rarely produce any tax benefits
12. [LO 2] What types of taxes qualify to be deducted as itemized deductions? Would a vehicle registration fee qualify as a deductible tax?
13. [LO 2] Compare and contrast the limits on the deduction of interest on home acquisition indebtedness versus home equity loans. Are these limits consistent with horizontal equity? Explain.
14. [LO 2] Explain the argument that the deductions for charitable contributions and home mortgage interest represent indirect subsidies for these activities.
15. [LO 2] {Research} Cash donations to charity are subject to a number of very specific substantiation requirements. Describe these requirements and how charitable gifts can be substantiated. Describe the substantiation requirements for property donations. Chapter 6 – Individual Deductions
16. [LO 1] Describe the conditions in which a donation of property to a charity will result in a charitable contribution deduction of fair market value and when it will result in a deduction of the tax basis of the property.
17. [LO 2] Describe the type of event that qualifies as a casualty for tax purposes.
18. [LO 2] A casualty loss from the complete destruction of a personal asset is limited to the lesser of fair market value or the property’s adjusted basis. Explain the rationale for this rule as opposed to just allowing a deduction for the basis of the asset.
19. [LO 1] {Research} This week Jim’s residence was heavily damaged by a storm system that spread destruction throughout the region. While Jim’s property insurance covers some of the damage, there is a significant amount of uninsured loss. The governor of Jim’s state has requested that the president declare the region a federal disaster area and provide federal disaster assistance. Explain to Jim the income tax implications of such a declaration and any associated tax planning possibilities.
20. [LO 2] Describe the types of expenses that constitute miscellaneous itemized deductions and explain why these expenses rarely produce any tax benefits
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