Personal expenditures that are deductible as itemized deductions include medical expenses, Federal income taxes, state income taxes, property taxes on a personal residence, mortgage interest, and charitable contributions.

The election to itemize is appropriate when total itemized deductions are less than the standard deduction based on the taxpayer’s filing status.

Adrienne sustained serious facial injuries in a motorcycle accident. To restore her physical appearance, Adrienne had cosmetic surgery. She cannot deduct the cost of this procedure as a medical expense.

A physician recommends a private school for Ellen’s dependent child. Because of the physician’s recommendation, the cost of the private school will qualify as a medical expense deduction (subject to percentage limitations).

Mindy paid an appraiser to determine how much a capital improvement made for medical reasons increased the value of her personal residence. The appraisal fee qualifies as a deductible medical expense.

Maria traveled to Rochester, Minnesota, with her son, who had surgery at the Mayo Clinic. Her son stayed at the clinic for the duration of his treatment. She paid airfare of $300 and $50 per night for lodging. The cost of Maria’s airfare and lodging cannot be included in determining her medical expense deduction.

Georgia contributed $2,000 to a qualifying Health Savings Account in 2015. The entire amount qualifies as an expense deductible for AGI.

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.

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 self-employed taxpayer.

. 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.

Trent sells his personal residence to Chester on July 1, 2015. He had paid $7,000 in real property taxes on March 1, 2015, the due date for property taxes for 2015. Trent may not deduct the portion of the taxes he paid for the period the property was owned by Chester.

. Herbert is the sole proprietor of a furniture store. He can deduct real property taxes on his store building as a business deduction but he cannot deduct state income taxes related to his net income from the furniture store as a business deduction.

Edna had an accident while competing in a rodeo. She sustained facial injuries that required cosmetic surgery. While having the surgery done to restore her appearance, she had additional surgery done to reshape her chin, which was not injured in the accident. The surgery to restore her appearance cost $9,000 and the surgery to reshape her chin cost $6,000. How much of Edna’s surgical fees will qualify as a deductible medical expense (before application of the AGI limitation)?

Fred and Lucy are married, ages 33 and 32, and together have AGI of $120,000 in 2015. They have four dependents and file a joint return. They pay $5,000 for a high deductible health insurance policy and contribute $2,600 to a qualified Health Savings Account. During the year, they paid the following amounts for medical care: $9,200 in doctor and dentist bills and hospital expenses, and $3,000 for prescribed medicine and drugs. In October 2015, they received an insurance reimbursement of $4,400 for the hospitalization. They expect to receive an additional reimbursement of $1,000 in January 2016. Determine the maximum itemized deduction allowable for medical expenses in 2015. 

Richard, age 50, is employed as an actuary. For calendar year 2015, he had AGI of $130,000 and paid the following medical expenses:

Derrick and Jane would qualify as Richard’s dependents except that they file a joint return. Richard’s medical insurance policy does not cover them. Richard filed a claim for $4,800 of his own expenses with his insurance company in November 2015 and received the reimbursement in January 2016. What is Richard’s maximum allowable medical expense deduction for 2016?

Compute Tom’s medical expenses for the trip (subject to the 10% floor).

 During 2015, Hugh, a self-employed individual, paid the following amounts:

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What is the maximum amount Hugh can claim as taxes in itemizing deductions from AGI?

During 2015, Nancy paid the following taxes:

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Brad, who uses the cash method of accounting, lives in a state that imposes an income tax (including withholding from wages). On April 14, 2015, he files his state return for 2014, paying an additional $600 in state income taxes. During 2015, his withholdings for state income tax purposes amount to $3,550. On April 13, 2015, he files his state return for 2014 claiming a refund of $800. Brad receives the refund on June 3, 2016. If he itemizes deductions, how much may Brad claim as a deduction for state income taxes on his Federal income tax return for calendar year 2015 (filed in April 2016)?

Barry and Larry, who are brothers, are equal owners in Chickadee Corporation. On July 1, 2015, each loans the corporation $10,000 at an annual interest rate of 10%. Both shareholders are on the cash method of accounting, while Chickadee Corporation is on the accrual method. All parties use the calendar year for tax purposes. On June 30, 2016, Chickadee repays the loans of $20,000 together with the specified interest of $2,000. How much of the interest can Chickadee Corporation deduct in 2015?

Rick and Carol Ryan, married taxpayers, took out a mortgage of $160,000 when purchasing their home ten years ago. In October of the current year, when the home had a fair market value of $200,000 and they owed $125,000 on the mortgage, the Ryans took out a home equity loan for $110,000. They used the funds to purchase a sailboat to be used for recreational purposes. The sailboat does not qualify as a residence. What is the maximum amount of debt on which the Ryans can deduct home equity interest?

Pedro’s child attends a school operated by the church the family attends. Pedro made a donation of $1,000 to the church in lieu of the normal registration fee of $200. In addition, Pedro paid the regular tuition of $6,000 to the school. Based on this information, what is Pedro’s charitable contribution?

Paul, a calendar year married taxpayer, files a joint return for 2015. Information for 2015 includes the following:

Paul’s allowable itemized deductions for 2014 are:

Which of the following items would be an itemized deduction on Schedule A of Form 1040 not subject to the 2%-of-AGI floor?

Karen, a calendar year taxpayer, made the following donations to qualified charitable organizations during the year:

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The land had been held as an investment and was acquired 4 years ago. Shortly after receipt, the City of Terre Haute sold the land for $210,000. Karen’s AGI is $450,000. The allowable charitable contribution deduction is:

Zeke made the following donations to qualified charitable organizations during the year:

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The used clothing was donated to the Salvation Army; the other items of property were donated to Eastern State University. Both are qualified charitable organizations. Disregarding percentage limitations, Zeke’s charitable contribution deduction for the year is: