Tom and Joan Moore are married filing a joint return. Both are 47 years old. During 2017, the following events took place. For items 1 through 12, select the appropriate tax treatment. A tax treatment may be selected once, more than once, or not at all.

1. On March 23, 2017, Tom sold 50 shares of Zip stock at a $1,200 loss. He repurchased 50 shares of Zip on April 15, 2017.

2. Payment of a personal property tax based on the value of the Moores' car.

3. Used clothes were donated to church organizations.

4. Premiums were paid covering insurance against Tom's loss of earnings.

5. Tom paid for subscriptions to accounting journals.

6. Interest was paid on a $10,000 home-equity line of credit secured by the Moores' residence. The fair market value of the home exceeded the mortgage by $50,000. Tom used the proceeds to purchase a sailboat.

7. Amounts were paid in excess of insurance reimbursement for prescription drugs.

8. Funeral expenses were paid by the Moores for Joan's brother.

9. Theft loss was incurred on Joan's jewelry in excess of insurance reimbursement. There were no 2017 personal casualty gains.

10. Loss on the sale of the family's sailboat.

11. Interest was paid on the $300,000 acquisition mortgage on the Moores' home. The mortgage is secured by their home.

12. Joan performed free accounting services for the Red Cross. The estimated value of the services was $500.

Options:

Not deductible on Form 1040.

Deductible in full in Schedule A—Itemized Deductions

Deductible in Schedule A—Itemized Deductions, subject to a threshold of 10% of adjusted gross income.

Deductible in Schedule A—Itemized Deductions, subject to a limitation of 50% of adjusted gross income.

Deductible in Schedule A—Itemized Deductions, subject to a $100 floor and a threshold of 10% of adjusted gross income

Deductible in Schedule A—Itemized Deductions, subject to a threshold of 2% of adjusted gross income.

Answer rating: 100% (QA)

SOLUTION IN THE YEAR 2017 IF THE INCOME IS MORE THAN 261500 THEN SUCH TAX PAYER CAN CL... View the full answer