【正文】 ment is included in gross ine only to the extent the taxpayer derived a tax benefit from deducting the expense in the previous year. Because Rhonda did not itemize in 2020, she received no tax benefit. PTS: 1 DIF: 1 REF: Example 12 OBJ: 2 NAT: AICPA FNMeasurement | AACSB Analytic MSC: 5 min 16. Geia contributed $2,000 to a qualifying Health Savings Account in 2020. The entire amount qualifies as a medical expense and is potentially deductible as an itemized deduction. ANS: F The payment to the HSA is a deduction for AGI. PTS: 1 DIF: 1 REF: p. 1010 OBJ: 2 NAT: AICPA FNReporting | AACSB Analytic MSC: 2 min 17. Shirley pays FICA (employer’s share) on the wages she pays her maid to clean and maintain Shirley’s personal residence. The FICA payment is not deductible as an itemized deduction. ANS: T The payment is a nondeductible personal expense. PTS: 1 DIF: 1 REF: Exhibit OBJ: 3 NAT: AICPA FNReporting | AACSB Analytic MSC: 2 min 18. Fees for automobile inspections, automobile titles and registration, bridge and highway tolls, parking meter deposits, and postage are not deductible if incurred for personal reasons, but they are deductible as deductions for AGI if incurred as a business expense by a selfemployed taxpayer. ANS: T Deductible and nondeductible taxes are summarized in Exhibit . Specified taxes (such as state ine taxes and real and personal property taxes) are deductible as itemized deductions, but personal fees are not. However, fees incurred in a trade or business are deductible, but not as itemized deductions. PTS: 1 DIF: 1 REF: p. 1012 OBJ: 3 NAT: AICPA FNMeasurement | AACSB Analytic MSC: 2 min Deductions and Losses: Certain Itemized Deductions 109 19. A taxpayer may not deduct the cost of new curbing (relative to a personal residence), even if the construction is required by the city and the curbing provides an incidental benefit to the public welfare. ANS: T Such assessments are added to the adjusted basis of the taxpayer’s property. PTS: 1 DIF: 1 REF: p. 1012 OBJ: 3 NAT: AICPA FNReporting | AACSB Analytic MSC: 2 min 20. Ernie sold his personal residence to Amanda on July 1, 2020. He had paid $3,900 in real property taxes on March 1, 2020, the due date for property taxes for 2020. Ernie must reduce the amount realized for his property by the portion of the $3,900 allocable to Amanda. ANS: T The real property taxes are apportioned between the buyer (Amanda) and seller (Ernie) on the basis of the number of days the property is held by each during the real property tax year. Ernie, who paid all of the tax for the year, must reduce his amount realized by the portion of the taxes allocable to Amanda. PTS: 1 DIF: 1 REF: p. 1014 | Example 19 OBJ: 3 NAT: AICPA FNMeasurement | AACSB Analytic MSC: 5 min 21. Jos233。101 CHAPTER 10 DEDUCTIONS AND LOSSES: CERTAIN ITEMIZED DEDUCTIONS Instructor: The test items in both the print Test Bank and ExamView testcreation software are numbered by question type within each chapter. Thus, users of ExamView can more easily preview their selections using the printed Test Bank in the same numbering system. Learning Objective, Level of Difficulty, Estimated Time to Completion, and the AACSB’s and AICPA’s Core Competencies for each test item are located within the item itself. Status: Q/P Question/ Present in Prior Problem Topic Edition Edition TRUE OR FALSE 1 Deductible personal expenditures Unchanged 1 2 Medical expense: deductibility New 3 Medical expense: cosmetic surgery Unchanged 3 4 Medical expense: private school Unchanged 4 5 Medical expense: appraisal fee for capital Unchanged 5 improvement 6 Medical expense: capital expenditure New 7 Medical expense: capital improvement Unchanged 7 8 Medical expenses of a dependent Unchanged 8 9 Medical expenses of a dependent New 10 Medical expense: transportation costs Unchanged 10 11 Medical expense: travel and cost of lodging New 12 Medical expense: deductibility of premiums paid New by selfemployed taxpayer 13 Medical expense: taxability of premiums paid Unchanged 13 by employer 14 Medical expenses that will be reimbursed in a Unchanged 14 future year 15 Medical expense reimbursement: tax benefit rule Unchanged 15 16 Health Savings Accounts Unchanged 16 17 Nondeductibility of FICA taxes for domestics Unchanged 17 18 Taxes and fees: personal versus business New 19 Local property tax and assessment for local benefits Unchanged 19 20 Apportionment of property taxes between buyer New and seller: impact on basis 21 Apportionment of property taxes between buyer New 102 2020 Comprehensive Volume/Test Bank and seller: deductibility 22 Business tax deduction Unchanged 22 Status: Q/P Question/ Present in Prior Problem Topic Edition Edition 23 Classification of state ine taxes Unchanged 23 24 State ine taxes: year of deduction Unchanged 24 25 Ine recognition and state ine tax refund New 26 Interest on qualified student loan Modified 26 27 Interest on qualified student loan New 28 Qualified residence interest: qualified residence Unchanged 28 defined 29 Qualified residence interest: qualified residence Unchanged 29 defined 30 Acquisition indebtedness Unchanged 30 31 Points paid on rental property Unchanged 31 32 Points paid by seller New 33 Points paid by seller Unchanged 33 34 Prepayment penalty Unchanged 34 35 Interest expense on amounts borrowed to purchase Unchanged 35 taxexempt bonds 36 Prepaid interest and method of accounting Unchanged 36 37 Year end charitable gift Unchanged 37 38 Charitable contributions char