4(a) Connie is employed as a tax accountant. For calendar year 2009, she had AGI of $80,000 and paid the following medical expenses: Medical insurance premiums $2,600 Doctor and dentist bills for Earl and Janet (Connie?s Parents) 5,500 Doctor and dentist bills for Connie 4,500 Prescribed medicines for Connie 200 Non-prescribed insulin for Connie 550 Earl and Janet would qualify as Connie?s dependents except that they file a joint return. Connie?s medical insurance policy does not cover them. Connie filed a claim for $2,100 of her own expenses with her insurance company in December 2009 and received the reimbursement in January 2010. What is Connie?s maximum allowable medical expense deduction for 2009? a. $1,850. b. $7,350. c. $11,550. d. $11,850. e. None of the above. 4(b) Joanne is single and does a lot of business entertaining at home. Joanne?s 80-year old dependent grandfather who lived with Joanne, needs medical and nursing care. he moved to Sierra Nursing Home. During the year, Joanne made the following payments on behalf of Aaron: Room at Sierra $ 9,000 Meals for Aaron 1,700 Doctor and nurse fees 1,400 Cable TV service for Aaron?s room 214 Total $12,314 Sierra has medical staff in residence. Disregarding the 7.5% floor, how much, if any, of these expenses qualify for a medical deduction by Joanne? a. $12,314. b. $12,100. c. $10,400. d. $3,100. e. None of the above. 4(c) Upon the recommendation of a physician, Gabriel has an elevator installed in his personal residence. He suffers from heart problems. In connection with this matter, Gabriel incurs and pays the following amounts during the current year: Elevator and cost of installation $13,000 Increase in utility bills due to the elevator 900 Cost of certified appraisal 700 The system has an estimated useful life of 20 years. The appraisal was to determine the value of Gabriel?s residence with and without the system. The appraisal states that the system increased the value of Gabriel?s residence by $1,000. Expenses qualifying for the medical deduction in the current year total: a. $14,600. b. $13,900. c. $13,000. d. $12,900. e. None of the above. 4(d) Ernest uses the cash method of accounting and lives in a state that imposes an income tax (including withholding from wages). On April 14, 2009, he files his state return for 2008, paying an additional $600 in state income taxes. During 2009, his withholdings for state income tax purposes amount to $3,700. On April 12, 2009, he files his state return for 2008 claiming a refund of $900. Ernest receives the refund on August 3, 2009. If Ernest itemizes deductions, how much may he claim as a deduction for state income taxes on his Federal return for calendar year 2009 (filed in April, 2010)? a. $3,400. b. $3,700. c. $3,900. d. $4,300. e. None of the above.
Paper#5128 | Written in 18-Jul-2015Price : $25