Which of the following is NOT a purpose of Form 8606?

To claim an exception to the penalty on an early distribution from a retirement plan.

To calculate the taxable portion of a traditional IRA distribution.

To determine the taxable amount of a nonqualified distribution from a Roth IRA.

To determine the taxable amount of a traditional IRA converted to a Roth IRA.

Which item below is NOT added to the original basis to arrive at the adjusted basis of a home?

The cost of improvements.

Assessments for local improvements.

The total amount of a casualty loss.

The cost of restoration after a casualty minus the insurance reimbursement.

A contribution to a traditional IRA may be tax-deductible. Assuming the taxpayer meets the age and compensation requirements, what factor(s) determine whether their contribution is deductible?

The taxpayer's tax liability.

Whether the taxpayer is covered by an employer-sponsored retirement plan.

The taxpayer's modified AGI and their tax liability.

The taxpayer's modified AGI and whether they are covered by an employer-sponsored retirement plan.