1-

Peter is a plumber employed by a major contracting firm. During the current year, he paid the following miscellaneous expenses:

Unreimbursed employee business expenses	$450
Union dues	$600
Tax return preparation fee	$100
Safe deposit box rental fee (used only for personal effects)	$ 20

If Peter were to itemize his deductions for the current year, what amount could he claim as miscellaneous itemized deductions (before applying the 2 percent of adjusted gross income limitation)?

a.$100

b.$1,070

c.$1,150

d.$550

e.None of these choices are correct.

2-

During the current year, Mr. and Mrs. West paid the following taxes:

Property taxes on residence	$1,900
Special assessment for installation of a sewer system in their neighborhood	$1,000
State personal property tax on their automobile (based on value)	$ 400
Property taxes on land held for long-term appreciation	$ 600

What amount can the Wests deduct as property taxes in calculating itemized deductions for the current year?

a.$1,900

b.$2,900

c.$0

d.$2,300

e.None of these choices are correct.

3-

Which of the following is not deductible as interest expense on Schedule A?

a.Home mortgage interest

b.Home mortgage prepayment penalties

c.Mortgage interest on a second residence

d.Loan fee charged for appraisal service

e.All of these choices are deductible as interest expense.