10) N volunteered to help a qualified charity with a fund raising banquet. N spent $90 of her own money to buy supplies for the event. Assuming N is not reimbursed for the expenditures, N may claim the $90 as a charitable donation on his return.
Group of answer choices
True
False
10a) In the current year, N paid $7,000 interest to his stockbroker on his margin account. N also had dividend income of $3,000 and interest income of $2,000 for the year. Given this information, N may claim a deduction for only $5,000 of the $7,000 interest he paid to his stockbroker. The $2,000 excess interest payment may be carried forward for possible deduction on a future return.
Group of answer choices
True
False
10b) N is self-employed. N lives and has her office in Santa Cruz. If N goes directly from her home to a client's office in Monterey and returns directly home, she would not be able to claim a deduction for the trip because she is going directly from her home to a client's office and returning home. The deduction would not be allowed because it is considered to be commuting (a personal expense).
Group of answer choices
True
False
10c) N and E purchased a new home in 2020. After making a down payment, N and E took out a bank loan to cover the balance of the purchase price. The loan was for $800,000. Because the entire loan relates to the purchase of a home, N and E may claim a deduction for all of the interest paid on the loan for 2020.
Group of answer choices
True
False
