Tom, age 48, is advised by his family physician that he needs back surgery to correct a problem from his last back surgery. As Tom is in a wheel chair, he needs his wife, Jean, to accompany him on his trip to Rochester, MN, for in-patient treatment at the Mayo Clinic, which specializes in this type of surgery. Tom incurred the following costs in 2025: Round-trip airfare ($350 each)           $ 700Jean’s hotel in Rochester for four nights ($95 per night)    380Jean’s meals while in Rochester        105Tom’s medical treatment        3,500Tom’s prescription medicine                600 Compute Tom’s allowable medical expenses for the trip (before application of the AGI floor).

Edna had an accident while competing in a rodeo. She sustained facial injuries that required cosmetic surgery. While having the surgery done to restore her appearance, she had additional surgery done to reshape her chin, which was not injured in the accident. The surgery to restore her appearance cost $9,000, and the surgery to reshape her chin cost $6,000. How much of Edna’s surgical fees will qualify as a deductible medical expense (before application of the 7.5%-of-AGI floor)?

Sang-hoon, who uses the cash method of accounting, lives in a state that imposes an income tax (including withholding from wages). On April 14, 2025, he files his state return for 2024, paying an additional $600 in state income taxes. During 2025, his withholdings for state income tax purposes amount to $3,550. On April 13, 2026, he files his state return for 2025, claiming a refund of $800. Sang-hoon receives the refund on June 3, 2026. If he itemizes deductions, how much may Sang-hoon claim as a deduction for state income taxes on his Federal income tax return for calendar year 2025 (filed in April 2026)?

Terry and Jim are both involved in operating illegal businesses. Terry operates a gambling business, and Jim operates a business selling narcotics. Both businesses have gross revenues of $500,000. The businesses incur the following expenses:                                                                 Terry                     JimEmployee salaries                      $200,000          $200,000Bribes to police                             25,000                25,000Rent and utilities                         50,000                50,000Cost of goods sold                     –0–                        125,000 Which of the following statements is correct?

Hannah makes the following charitable donations in the current year:                                                                                                                                Basis                   Fair Market Value•         Inventory held for resale in Hannah’s business                 (a sole proprietorship)                                                                 $  8,000               $ 7,200      •         Stock in HBM, Inc., held as an                 investment (acquired four years ago)                                    16,000                 40,000      •         Baseball card collection held as an                 investment (acquired six years ago)                                      4,000                    20,000       The HBM stock and the inventory were given to Hannah’s church, and the baseball card collection was given to the United Way. Both donees promptly sold the property for the stated fair market value.  Disregarding percentage limitations, Hannah’s current charitable contribution deduction is:

Tom operates an illegal drug operation and incurred the following expenses: Salaries             $ 75,000Illegal kickbacks          20,000Bribes to border guards          25,000Cost of goods sold     160,000Rent     8,000Interest               10,000Insurance on furniture and fixtures 6,000Utilities and telephone            20,000 Which of the following amounts reduces his taxable income?

Andrew, who operates a laundry business, incurred the following expenses during the year:         ∙     Parking ticket of $250 for one of his delivery vans that parked illegally.        ∙     Parking ticket of $75 when he parked illegally while attending a rock concert in Tulsa.∙     DUI ticket of $500 while returning from the rock concert. ∙     Attorney’s fee of $600 associated with the DUI ticket. What amount can Andrew deduct for these expenses?

Sammy, a calendar year cash basis taxpayer who is age 66, has the following transactions in 2025:  Salary from job             $90,000Alimony received from ex-wife (2022 divorce)          10,000Medical expenses       6,500Based on this information, Sammy has:

Pat gave 5,000 shares of stock in Coyote Corporation (a publicly traded corporation) to her church (a qualified charitable organization) in the current year. The stock was worth $180,000. She had acquired it as an investment four years ago at a cost of $120,000. She reported AGI of $300,000 for the year. In completing her current income tax return, how much is her current-year charitable contribution deduction, assuming she has all of the documentation required by the tax law?

Zeke made the following donations to qualified charitable organizations during the year and obtained the documentation required by the tax law:                                                                                                                                 Basis                   Fair Market Value•         Used clothing of taxpayer and his family                 (all acquired more than a year ago)                                 $ 1,350              $    375       •         Stock in ABC, Inc., held as an                 investment for 15 months                                                     12,000                 10,875       •         Stock in MNO, Inc., held as an                                            investment for 11 months                                                     15,000                 18,000       •         Real estate held as an investment for two years     15,000                 30,000       The used clothing was donated to the Salvation Army; the other items of property were donated to Eastern State University. Both are qualified charitable organizations. Disregarding percentage limitations, Zeke’s charitable contribution deduction for the year is: