Individual Taxation Paper 13


Ruth Lewis has adjusted gross income of $100,000 for 2012 and itemizes her deductions. On September 1, 2012, she made a contribution to her church of stock held for investment for two years that cost $10,000 and had a fair market value of $70,000. The church sold the stock for $70,000 on the same date. Assume that Lewis made no other contributions during 2012 and made no special election in regard to this contribution on her 2012 tax return. How much should Lewis claim as a charitable contribution deduction for 2012?


On December 15, 2012, Donald Calder made a contribution of $500 to a qualified charitable organization, by charging the contribution on his bank credit card. Calder paid the $500 on January 20, 2013, upon receipt of the bill from the bank. In addition, Calder issued and delivered a promissory note for $1,000 to another qualified charitable organization on November 1, 2012, which he paid upon maturity six months later. If Calder itemizes his deductions, what portion of these contributions is deductible in 2012?


Under a written agreement between Mrs. Norma Lowe and an approved religious exempt organization, a ten-year-old girl from Vietnam came to live in Mrs. Lowe’s home on August 1, 2012, in order to be able to start school in the US on September 3, 2012. Mrs. Lowe actually spent $500 for food, clothing, and school supplies for the student during 2012, without receiving any compensation or reimbursement of costs. What portion of the $500 may Mrs. Lowe deduct on her 2012 income tax return as a charitable contribution?


During 2012, Vincent Tally gave to the municipal art museum title to his private collection of rare books that was assessed and valued at $60,000. However, he reserved the right to the collection’s use and possession during his lifetime. For 2012, he reported an adjusted gross income of $100,000. Assuming that this was his only contribution during the year, and that there were no carryovers from prior years, what amount can he deduct as contributions for 2012?


Jimet, an unmarried taxpayer, qualified to itemize 2012 deductions. Jimet’s 2012 adjusted gross income was $30,000 and he made a $2,000 cash donation directly to a needy family. In 2012, Jimet also donated stock, valued at $3,000, to his church. Jimet had purchased the stock four months earlier for $1,500. What was the maximum amount of the charitable contribution allowable as an itemized deduction on Jimet’s 2012 income tax return?


Taylor, an unmarried taxpayer, had $90,000 in adjusted gross income for 2012. During 2012, Taylor donated land to a church and made no other contributions. Taylor purchased the land in 1999 as an investment for $14,000. The land’s fair market value was $25,000 on the day of the donation. What is the maximum amount of charitable contribution that Taylor may deduct as an itemized deduction for the land donation for 2012?


In 2012, Joan Frazer’s residence was totally destroyed by fire. The property had an adjusted basis and a fair market value of $130,000 before the fire. During 2012, Frazer received insurance reimbursement of $120,000 for the destruction of her home. Frazer’s 2012 adjusted gross income was $70,000. Frazer had no casualty gains during the year. What amount of the fire loss was Frazer entitled to claim as an itemized deduction on her 2012 tax return?


Alex and Myra Burg, married and filing joint income tax returns, derive their entire income from the operation of their retail candy shop. Their 2012 adjusted gross income was $50,000. The Burgs itemized their deductions on Schedule A for 2012. The following unreimbursed cash expenditures were among those made by the Burgs during 2012:
Repair of glass vase accidentally broken in home by dog; vase cost $500 in 2009; fair value $600 before accident and $200 after accident $90
Without regard to the $100 “floor” and the adjusted gross income percentage threshold, what amount should the Burgs deduct for the casualty loss in their itemized deductions on Schedule A for 2012?


Hall, a divorced person and custodian of her twelve-yearold child, filed her 2012 federal income tax return as head of a household. During 2012 Hall paid a $490 casualty insurance premium on her personal residence. Hall does not rent out any portion of the home, nor use it for business. The casualty insurance premium of $490 is


Which of the following is not a miscellaneous itemized deduction?


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