Answers will be posted in responses section in about 1 week.

This is for my own review and organization of class notes for a tax course I am taking right now.

1 How does one determine the taxable income of taxpayers who itemize deductions?
2 Who may itemize?
3 The cost of most legal medical and dental procedures is deductable, but there is an exception. What is it?
4 What kinds of medicines and drugs may be claimed as itemized deductions?
5 Although the cost of non perscription medicines is not deductable, there is a tax break available regarding them. What is it?
6 Is the cost of a weight loss program or weight loss surgery deductable?
7 If a taxpayer drives his own car to the doctor or to buy perscription medication, what expenses, in addition to the doctor bill or cost of medicine may he deduct?
8 A man paid $2500 to have a hot tub installed in his home because his doctor perscribed it for the man's back problems, The hot tub increased the value of the home by $2000 and cost $300 to run during the year. How much may be deducted as a medical expense?
9 Is the deduction for medical expenses limited?
10 What types of taxes are deductable?
11 Where is federal income tax withheld reported?
12 Where are social security and medicare taxes withheld reported?
13 Where are state and local income taxes withheld reported?
14 What is a general sales tax?
15 A taxpayer makes his final 2006 state estimated payment on Jan 15, 2007. Should he report this item?
16 A taxpayer has a 2006 state balance due, which she paid when she filed her return on April 8 2007. Where should she report this item?
17 A taxpayer has a 2006 local income tax balance due, which she paid in full when she filed on April 8, 2007. Where should she report this item?
18 A taxpayer has a 2006 local estimated tax payment, which he made on the 15th of April, June and September, and on Jan 15, 2007. Where should he report these items?
19 For income tax purposes, we divide interest a taxpayer paid into several categories. What are the categories?
20 Why is it important to distinguish between qualified home mortgage interest from personal interest?
21 On how many homes may a taxpayer deduct home mortgage interest?
22 There are two categories of home mortgage interest, what are they?
23 What is acquisition debt?
24 What is home equity debt?
25 Generally what is the limit on acquisition debt for which interest paid may be deducted in full?
26 What is the comperable limit for home equity debt?
27 What are points?
28 When are points deductable?
29 If paid by the buyer, are points deductable?
30 Suppose points are paid by the seller, what happens then?
31 Under what circumstances may points be deducted ratably over the life of the loan (as opposed to using OID rules)?
32 What is investment interest?
33 To what extent is investment interest deductable?
34 Is interest paid to purchase non taxable investments, such as municipal bonds, deductable?
35 What is personal interest?
36 Is personal interest deductable?
37 What are qualified charitable organizations?
38 Which of the following outlays are deductable as charitable contributions:
a) church
b) a worthy individual
c) school for scholarship fund
d) school for tickets to alumni banquet
e) donation to boy scouts
f) scout camp fee for child
g) ymca membership dues
h) ymca building fund
39 Is the cost of items purchased to benefit a charitable organization deductable? For example ballet tickets to raise money for a non profit hospital?
40 What is the general deduction limit for charitable organizations?
41 What can be deducted by volunteer workers?
42 What can be claimed in lieu of actual gas and oil expenses?
43 May a volunteer claim a deduction for the value of his time?
44 What is the allowable deduction for permitting a charitable organization to use property without charge?
45 A taxpayer wrote a check for a $500 donation to his mosque. Is his cancelled check sufficient to support his deduction?
46 What charactoristics must an event have to qualify as a casulaty or theft?
47 What types of damage or destruction qualify as casualties or thefts?
48 Name some types of losses that would not qualify as a casualty or theft?
49 By what amounts must all casualty and theft losses of personal use property be reduced?
50 May a taxpayer claim a casualty loss for uninsured damages to his dependant teenagers car if the car is registered in the dependant's name?
51 What if the car was registered jointly in the taxpayer's and dependant's name?
52 What information must you obtain to determine the amount of a casualty or theft loss?
53 What can be used as a measure of the decrease in fair market value?
54 What is the allowable loss?
55 In what year is the casualty or theft loss deducted?
56 What are the general types of itemized deductions which are subject to the 2% AGI floor?
57 Which expenses are reported on line 20?
58 Under what circumstances may unreimbursed employee expenses be reported directly on schedule A line 20, rather than on form 2106 or 2106EZ and then on line 20?
59 What are deductable transportation expenses?
60 What is commuting?
61 Describe the optional method of deducting transportation expenses.
62 What conditions must be met to qualify to use the optional method?
63 What education expenses may be deducted by an employee on schedule A?
64 What other tax options are available for employees taking job related education?
65 What is the primary requirement to deduct job seeking expenses?
66 What are some employee expenses that can be claimed directly on line 20 without using form 2106 or 2106EZ?
67 What expenses are reported on line 21?
68 Are bank fees for products, such as refund anticipation loans, deductable?
69 What expenses are on line 22?
70 Name some deductable investment expenses.
71 What is the limitation on deductions of hobby expenses?
72 What are some miscellaneous itemized deductions which are NOT subject to the 2% AGI limitation?
73 Where are such expenses deducted?
74 What limitation must we keep in mind when deducting gambling losses?
75 What type of information should be retained by the taxpayer if he wishes to deduct gambling losses?
76 At what AGI might a taxpayers itemized deductions be limited?
77 If the AGI is greater than the limited, by what percent might the deductions be limited?
78 What is the most common taxable recovery?
79 Under what circumstances is the refund of state income tax generally taxable?
80 Name two other types of recoveries that may be taxable if the taxpayer itemized.