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Tax Paper Court Method

In: Business and Management

Submitted By kirchb11
Words 438
Pages 2
Accounting 411
In Class Exercise

1. What types of educational expenses are deductible?
-interest paid on qualified education loans, education expenses incurred for continuing professional education courses if certain requirements are met, education expenses incurred to maintain or improve skills required in a present job, education expenses incurred to meet expressed requirements of an employer, tuition, books, and other misc. expenses and any related travel and transportation costs. 2. What types of educational expenses qualify for the American Opportunity Credit?
-$2500 credit for a student for the first four years of college, qualified expenses include tuition, fees, and course materials. 3. Any differences between 1 and 2?
-number 2 is more for middle and lower level income persons, it also just covers the first four years of college 4. How do you claim an educational expense on a return?
-deduction “for” AGI 5. I donated a used car (value $3,000) to a qualified charity. I itemize my deductions, and I would like to take a charitable contribution for the donation. Do I need to attach any special forms to my return?
-Yes, you would have to fill out the Schedule A form for itemized deductions 6. Is the mortgage interest and property tax on a second residence deductible?
-yes, for property taxes you may deduct all taxes on all your houses, however on mortgage interest you are allowed only deductions on the primary residence and one more abode. 7. A taxpayer’s father is in a nursing home and the taxpayer pays for the entire cost. Can the taxpayer deduct the expense on his/her tax return?
-you would not being able to claim him as a dependent unless his income was low enough, and the only amount you would be able to deduct would be for any medical expenses incurred.

Extra Credit

1. Doris was in a bad car accident near her

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