Reference no: EM132350613

Question - George is single and age 56, has AGI of $265,000, and incurs the following expenditures in this year.

Medical expenses (before 7.5% floor) $27000

Interest on home mortgage $15500

State income tax $7500

Real estate tax $8600

Charitable contribution $6500

1. What is the amount of George's medical deduction?

a. $27,000

b. $7,125

c. $500

d. $0

e. None of the above.

2. Interest on the home mortgage is deductible

a. if the residence is a principal personal residence

b. if the residence is one other residence in addition to the principal personal residence

c. on up to 750,000 of acquisition indebtedness incurred after 12/15/17 and before 1/1/26

d. not on an equity loan borrowed out of the principal personal residence as long as there is equity

e. All of the above.

3. Given the facts of this example, George would deduct among the taxes

a. state income tax

b. state sales tax

c. real estate tax

d. a. & c.

e. All of the above.

4. The charitable contribution, on these facts, is

a. deductible

b. not deductible

c. only deductible at 50 percent

d. only deductible at 30 percent

e. None of the above.

5. The overall phaseout of itemized deductions

a. was repealed by the TCJA of 2017

b. applies in this example

c. it is impossible to determine from the facts given whether or not the overall phaseout of itemized deductions applies

d. All of the above.

e. None of the above.