Ind.chapte 7.docVIP

Prentice Halls Federal Taxation 2013 Individuals, 26e (Pope) Chapter I7 Itemized Deductions 1) For individuals, all deductible expenses must be classified as deductions for AGI or deductions from AGI. Answer: TRUE Page Ref.: I:7-2 Objective: 1 2) In 2012, medical expenses are deductible as a from AGI deduction to the extent that they exceed 7.5 percent of the taxpayers AGI. Answer: TRUE Page Ref.: I:7-2 Objective: 1 3) Medical expenses paid on behalf of an individual who could be the taxpayers dependent except for the gross income or joint return tests are deductible as itemized deductions. Answer: TRUE Page Ref.: I:7-2 Objective: 1 4) Medical expenses incurred on behalf of children of divorced parents are deductible by the parent who pays the expenses but only if that parent also is entitled to the dependency exemption. Answer: FALSE Explanation: As long as one divorced parent qualifies to claim the dependency exemption under Sec. 152(e), the parent who pays medical expenses on behalf of the children may deduct the expenses. Page Ref.: I:7-2 Objective: 1 5) The definition of medical care includes preventative measures such as routine physical examinations. Answer: TRUE Page Ref.: I:7-3 Objective: 1 6) Due to stress on the job, taxpayer Charlie began to experience chest pains. In order to relax and relieve the pains, he and his spouse went on an ocean cruise. The cost of the cruise to alleviate this medical condition is tax deductible. Answer: FALSE Page Ref.: I:7-3; Example I:7-2 Objective: 1 7) Expenditures for a weight reduction program are deductible if recommended by a physician to treat a specific medical condition such as hypertension caused by excess weight. Answer: TRUE Page Ref.: I:7-3; Example I:7-3 Objective: 1 8) In order for a taxpayer to deduct a medical expense, the amount must be paid to a certified medical doctor (M.D.). Answer: FALSE Explanation: Taxpayers may deduct payments to a wide range of medical, den