1. Which of the following donations are not deductible as a charitable contribution?
a. A donation of clothing to Goodwill Industries
b. A contribution to a church
c. A contribution to a public university
d. A contribution to a labor union
e. A contribution to a museum
2. Stanley donates a hotel to a university for use as a conference center. The building cost $1,500,000 3 months ago and has a fair market value of $1,900,000 on the date the contribution is made. If Stanley had sold the building, the $400,000 difference between the sales price and cost would have been a short-term capital gain. What is the amount of Stanley’s deduction for this contribution, before considering any limitation based on adjusted gross income?
e. The amount cannot be determined from the information given
3. In March of 2014, Thomas makes a $5,000 cash contribution to a public university. In that month, he also donates $20,000 to an organization subject to the 30 percent limitation. Thomas has adjusted gross income for 2014 of $35,000. What is the amount of Thomas’s 2014 charitable contribution deduction?
e. None of the above
4. Which of the following gifts is a deductible contribution:
a. A gift of $100 to a homeless person
b. A $500 gift to the Democratic National Committee
c. $1,000 spent on church bingo games
d. A $200 contribution to the federal government to pay down the national debt
5. Which of the following is not a qualified casualty loss?
a. Damage to an automobile from rust
b. An automobile accident
c. A fire loss
d. A tornado loss
e. A flood loss
6. Which of the following is not a miscellaneous itemized deduction?
a. Tax preparation fees
b. Professional dues
c. Investment interest expense
d. Job hunting expenses
7. Which of the following items is not deductible as a miscellaneous deduction on Schedule A?
a. Investment expenses
b. Gambling losses to the extent of gambling winnings
c. Unreimbursed business expenses
d. Subscriptions to professional publications
e. Charitable contributions
8. Which of the following statements is true with regard to the classification of employment related expenses?
a. A self employed taxpayer’s business travel expenses are deductible as itemized deductions.
b. Reimbursed employee business expenses are always deductible as deductions for adjusted gross income.
c. Unreimbursed employee business expenses are deductible as deductions for adjusted gross income.
d. Unreimbursed employee business expenses are deductible as deductions from adjusted gross income.
e. All of the above are true.
9. What form does an employee use to report expenses that are fully reimbursed by an employer under an accountable plan?
a. Schedule D
b. Schedule A, Miscellaneous Itemized Deductions
c. Schedule C
d. Form 2106, Employee Business Expenses
e. No form; the expenses are not reported as income to the employee, so they are not deducted on an IRS form in the employee’s tax return