1. Bob is single, age 35, with a dependent child living with him. He has AGI of $415,850 for 2018.

Included in the AGI, he has gambling winnings of $2,000. His mortgage balance is $500,000.

He has the following expenses for the year:

Items: Dollar Amount Items: Dollar Amount

Mortgage Interest $18,000 Credit Card Interest $3,500

State Income Taxes $21,000 Real Estate Taxes $4,000

Personal Property Taxes $ 1,500 Charitable Contribution $7,000

Gambling Losses $ 4,500 Medical Expenses $5,000

(after AGI limitation)

What is the amount of Bob's itemized deductions for 2018?

a) $42,000

b) $45,500

c) $44,500

d) $58,500

2. Hal, age 52 and single, had taxable compensation for the year of $6,700. In addition, he

received interest income of $300. During the tax year, he contributed $6,400 to his IRA. He is

covered by a retirement plan at work and his modified adjusted gross income (MAGI) is

$22,000. What is the maximum IRA deduction he can take for tax year 2018?

a) $6,400

b) $6,700

c) $5,500

d) $6,500

3. Which of the following statements regarding Circular 230 is incorrect?

a) Tax practitioners must promptly return a client's records if the client makes such a request.

He may keep copies of the records.

b) A tax practitioner must exercise due diligence in preparing or assisting in the preparation

of, approving, and filing returns, documents, affidavits, and other papers relating to the

Internal Revenue Service.

c) A practitioner shall not represent a client before the IRS if the representation involves a

conflict of interest.

d) Only an attorney, certified public accountant, enrolled agent, or enrolled actuary who is an

income tax preparer may endorse or otherwise negotiate any refund checks made to his

clients