R2

Question 1

where to deduct qualified mortgage interest paid

Answer 1

schedule A as an itemized deduction. not an immediate deduction to arrive at net income

Question 2

for a spouse who is an active participant in an IRA account, what is phase out range beginning ?

Answer 2

105K

Question 3

maximum annual deductible amount for self-employed individuals to a SEP IRA

Answer 3

lesser of 20% of net earnings and 58K

note: net earnings is defined as self employment income minus one half of self employment taxes

Question 4

calculating FMV for deducting appreciated long-term capital gain (LTCG) property that is donated

Answer 4

lesser of 30% of AGI or the appreciated FMV

Question 5

Deductible FOR AGI (above the line deductions) “IM HEARTACHES”

Answer 5

I-IRA contribution
M- moving expenses (armed forces only)

H- health saving account deduction
E- educator expenses
A- attorney fees 
R- self employed Retirement plan contributions
T- taxes on part of self employment tax
A- alimony paid (before dec 31 2018)
C- charitable contributions (up to $300)
H- self-employed HEALTH insurance deduction
E- early withdrawal of saving penalty
S- student loan interest

Question 6

schedule A deductions (MAGIC T)

Answer 6

personal (MAGIC T):
M- medical
A- cAsualty
G- gambling loss
I- interest
C- charitable cont

Question 7

schedule C deductions

Answer 7

business deductions

Question 8

schedule E deductions

Answer 8

rental deductions

Question 9

ordinary income property

Answer 9

property held 1 year or less. when u make a charitable contribution, you want to take the lesser of current value or FMV for ordinary income property

Question 10

to avoid penalties, tax payer must pay:

Answer 10

if they owe >1K:
pay the lesser of:
90% of the current years tax
100% of previous year**

**if they make more than 150K, need to pay110% of last year’s tax