1. Stewart had adjusted gross income of $22,000 in 2016. During the year, he made the following contributions to qualified charities:
- $7,000 cash
- 1,000 shares of Able Corporation common stock, acquired in 1980 (cost and fair market value of $5,000)
Considering the charitable contribution deduction limitation, what amount can Stewart claim as a deduction for charitable contributions in 2016?

a.$11,000

b.$12,000

c.$7,000

d.$5,000

e. None of these choices are correct.

2. Margo has $2,200 withheld from her wages for state income taxes during 2016. In March of 2016, she paid $400 in additional taxes for her 2015 state tax return. Her state income tax liability for 2016 is $2,700 and she pays the additional $500 when she files her 2016 state tax return in April of 2017. What amount should Margo deduct as an itemized deduction for state income taxes on her 2016 federal income tax return, assuming she elects to deduct state and local income taxes?

a.$3,100

b.$2,600

c.$2,100

d.$2,500

e. None of these choices are correct.

3. Which of the following taxes is not deductible as an itemized deduction?

a. Sales tax in a state with no income tax

b. State income tax

c. Property tax on second residence

d. Federal income tax

Answer rating: 100% (QA)

1 Contributions will be limited to 50 of adjusted gross income Adjusted gross income of stewart ... View the full answer