Deductible medical expenses include payments to medical care providers such as doctors, dentists, and nurses and medical care facilities such as hospitals. TRUE Taxpayers traveling for the primary purpose of receiving essential and deductible medical care may deduct the cost of travel.
Unreimbursed employee business expenses, investment expenses, hobby expenses, and certain other expenses are classified as miscellaneous itemized deductions and are deductible only to the extent that their sum exceeds 2% of the taxpayer's AGI. TRUE Taxpayers generally deduct the lesser of their standard deduction or their itemized deductions.
E. All of these are subject to the itemized deduction phase-out. A. gambling losses Medical expenses, casualty losses, investment interest expense, and gambling losses are not subject to the phase-out. Andres and Lakeisha are married and file joint. Andres is 72 years old and in good health. Lakeisha is 62 years old and blind.
FALSE - unreimbursed Employee business expenses are itemized subject to a 2% of AGI floor. All investment expenses are itemized deductions. FALSE - rental/royalty deductions are above the line. The phrase "ordinary and necessary" means that an expense must be appropriate and helpful for generating a profit. TRUE
For purposes of the deduction for educational interest, qualified education expenses are those paid for the education of the taxpayer, the taxpayer's spouse, or a taxpayer's dependent. Mason paid $4,100 of interest on a loan that paid tuition for him to attend a private university this year.
A casualty loss on personal-use assets is generally not deductible. Congress allows self-employed taxpayers to deduct the cost of health insurance above the line (for AGI) because: a.) employers are allowed to deduct social security (FICA) taxes as a business expense.
A taxpayer who incurs acquisition indebtedness in 2018 may only deduct interest on up to $750,000 of acquisition indebtedness. Glenn is an accountant who races stock cars as a hobby. This year Glenn was paid a salary of $80,000 from his employer and won $2,000 in various races.
All of the choices are correct. a.) Self-employed taxpayers are not allowed to deduct health care premiums if the taxpayer is eligible to participate in their spouse's employer-provided health plan. Brice is a single, self-employed electrician who earns $60,000 per year in self-employment income.
Amanda cannot deduct Federal gift taxes. Carly donated inventory (ordinary income property) to a church. She purchased the inventory last month for $100,000, and on the date of the gift, it had a fair market value of $92,000.
d.) Norma can deduct $10,000 of taxes as an itemized deduction. Madeoff donated stock (capital gain property) to a public charity. He purchased the stock 3 years ago for $100,000, and on the date of the gift, it had a fair market value of $200,000.
An employee (or spouse) who works for an employer with a high deductible health plan. B.An employee of a company that offers no health coverage and the employee has purchased a high. deductible health plan on their own.
In 2009, to take advantage of lower interest rates, he refinanced his qualified education loans with another loan. He is not a dependent on another person's tax return.