ACTG 6710 Lecture Notes - Lecture 1: Cost Of Carry, Property Income, Remittance
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During 2015, George, a salaried taxpayer, paid the followingtaxes which were not incurred in connection with a trade orbusiness: Federal income tax withheld by employer $1,500; Stateincome tax withheld by employer $1,100; FICA tax withheld byemployer $700; Real property taxes $900; Federal auto gasolinetaxes $300; Federal excise tax on telephone bills $50. What amountcan George claim for 2015 as an itemized deduction for the taxespaid, assuming he elects to deduct state and local incometaxes?
| A. | $1,400 | |
| B. | $1,100 | |
| C. | $1,150 | |
| D. | None are correct | |
| E. | $2,000 |
Choose the correct statement:
| A. | If a financial planner becomes certified, then he/she may notdeduct the Certified Financial Planner (CFP) dues because it is notnecessary to be certified in order to engage in the business ofbeing a financial planner. | |
| B. | If a taxpayer does a lot of business travel, the taxpayer maydeduct the amount paid for an airline club membership. | |
| C. | None are correct | |
| D. | Membership dues to a golf club are deductible as long as thereis a business purpose. | |
| E. | In order to be deductible, dues and subscriptions must berelated to the taxpayerâs occupation. |
For 2015, Eugene and Linda had adjusted gross income of $30,000.Additional information for 2015 is as follows: Cash contribution tochurch $1,500; Tuition paid to a parochial school $1,200;Contribution to the American Red Cross $400; Cash contribution to aneedy family $75. What is the maximum amount that they can use as adeduction for charitable contributions for 2015?
| A. | $1,900 | |
| B. | $1,975 | |
| C. | none are correct | |
| D. | $3,175 | |
| E. | $3,000 |
For the year ended December 31, 2015, David, a married taxpayerfiling a joint return, reported the following: Investment incomefrom interest $24,000; Investment expenses other than interest$4,000; Interest expense on funds borrowed in 2006 to purchaseinvestment property $70,000. What is the maximum amount that Davidcan deduct in 2015 as investment interest expense?
| A. | $7,000 | |
| B. | $20,000 | |
| C. | None are correct | |
| D. | $21,000 | |
| E. | $24,000 |
Barry is a self-employed attorney who travels to New York on abusiness trip during 2015. Barry's expenses were as follows:Airfare $560; Taxis $40; Meals $200; Lodging $350. How much mayBarry deduct as travel expenses for the trip?
| A. | $1,050 | |
| B. | $1,000 | |
| C. | $950 | |
| D. | None are correct | |
| E. | $0 |
Christine saw a television advertisement asking for donations ofused vehicles to a charitable foundation and decided to donate herold car. Which of the following statements is correct?
| A. | She can take a deduction greater than the amount for which thecharity actually sells the vehicle. | |
| B. | She can claim an estimated value for the auto if the charityuses it rather than selling it. | |
| C. | The charity is not required to provide her with any informationabout what they do with the auto. | |
| D. | She can take a tax deduction large enough on an after-tax basisto equal the amount she would have received if she sold the cardirectly. |
