ACC 3410 Chapter 7 True/False

Taxpayers filing single and taxpayers filing married filing jointly have the same basic standard deduction amount.

False

Taxpayers filing single and taxpayers filing married filing separately have the same basic standard deduction amount.

True

An individual who is eligible to be claimed as a dependent on another's return and has $1,000 of earned income may claim a standard deduction of $1,450.

True

Generally, service businesses are considered qualified trade or businesses for purposes of the deduction for qualified business income.

False

All reasonable moving expenses are deductible by employees.

False

The medical expense deduction is designed to provide relief for doctors and medical practitioners.

False

Deductible medical expenses include payments to medical care providers such as doctors, dentists, and nurses and medical care facilities such as hospitals.

True

The deduction for medical expenses is limited to the amount of unreimbursed qualifying medical expenses paid during the year reducedby 2 percent of the taxpayer's AGI.

False

Taxpayers may elect to deduct state and local sales taxes instead of deducting state and local income taxes.

True

Taxpayers are allowed to deduct mortgage interest on up to $1,000,000 of acquisition debt for their qualified residence for acquisition debt incurred after December 15, 2017.

False

The deduction for investment interest in excess of net investment income carries forward to the subsequent year.

True

To qualify as a charitable deduction the donation must be made by cash or by check.

False

In general, taxpayers are allowed to deduct the fair market value of long term capital gain property on the date of the donation to a qualified charitable organization.

True

The deduction to individual taxpayers for charitable contributions paid in cash to public charities is limited to 10 percent of the taxpayer’s AGI.

False

Unreimbursed employee business expenses and hobby expenses are not deductible.

True

Taxpayers generally deduct the lesser of their standard deduction or their itemized deductions.

False