Individual Taxation Paper 11


Ruth and Mark Cline are married and plan to file a joint 2013 income tax return. Among their expenditures during 2013 were the following discretionary costs that they incurred for the sole purpose of improving their physical appearance and selfesteem:
Face-lift for Ruth, performed by a licensed surgeon $5,000
Hair transplant for Mark, performed by a licensed surgeon 3,600
Disregarding the adjusted gross income percentage threshold, what total amount of the aforementioned doctors’ bills may be claimed by the Clines in their 2013 return as qualifying medical expenses?


During 2012, Scott charged $4,000 on his credit card for his dependent son’s medical expenses. Payment to the credit card company had not been made by the time Scott filed his income tax return in 2013. However, in 2012, Scott paid a physician $2,800 for the medical expenses of his wife, who died in 2011. Disregarding the adjusted gross income percentage threshold, what amount could Scott claim in his 2012 income tax return for medical expenses?


Which one of the following expenditures qualifies as a deductible medical expense for tax purposes?


All of the following taxes are deductible as itemized deductions by a self-employed taxpayer except


Matthews was a cash-basis taxpayer whose records showed the following:
2012 state and local income taxes withheld $1,500
2012 state estimated income taxes paid December 30, 2012 400
2012 federal income taxes withheld 2,500
2012 state and local income taxes paid April 17, 2013 300
What total amount was Matthews entitled to claim for taxes on her 2012 Schedule A of Form 1040?


In 2011, Farb, a cash-basis individual taxpayer, received an $8,000 invoice for personal property taxes. Believing the amount to be overstated by $5,000, Farb paid the invoiced amount under protest and immediately started legal action to recover the overstatement. In June 2012, the matter was resolved in Farb’s favor, and he received a $5,000 refund. Farb itemizes his deductions on his tax returns. Which of the following statements is correct regarding the deductibility of the property taxes?


In 2012, Burg paid $8,000 to the tax collector of Sun City for realty taxes on a two-family house owned in joint tenancy between Burg and his mother. Of this amount, $3,800 covered back taxes for 2011, and $4,200 covered 2012 taxes. Burg resides on the second floor of the house, and his mother resides on the first floor. In Burg’s itemized deductions on his 2012 return, what amount was Burg entitled to claim for realty taxes?


During 2012, Jack and Mary Bronson paid the following taxes:
Taxes on residence (for period January 1 to December 31, 2012) $2,700
State motor vehicle tax on value of the car 360
The Bronsons sold their house on June 30, 2012, under an agreement in which the real estate taxes were not prorated between the buyer and sellers. What amount should the Bronsons deduct as taxes in calculating itemized deductions for 2012?


George Granger sold a plot of land to Albert King on July 1, 2012. Granger had not paid any realty taxes on the land since 2010. Delinquent 2011 taxes amounted to $600, and 2012 taxes amounted to $700. King paid the 2011 and 2012 taxes in full in 2012, when he bought the land. What portion of the $1,300 is deductible by King in 2012?


During 2012 Mr. and Mrs. West paid the following taxes:
Property taxes on residence $1,800
Special assessment for installation of a sewer system in their town 1,000
State personal property tax on their automobile 600
Property taxes on land held for long-term appreciation 300
What amount can the Wests deduct as property taxes in calculating itemized deductions for 2012?


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