Question

4. Investment interest expense which is disallowed because it exceeds the​ taxpayer's net investment income may be carried over and treated as incurred in subsequent years

True or False?

6. In what cases are medical insurance premiums paid by an individual not deductible as qualified medical​ expenses?

A. If the premiums cover more than just health care or​ long-term care for the chronically​ ill, (i.e. coverage for loss of income or​ life) and the cost of the separate items are not identified as a component of the total​ premium, then none of the premiums are deductible.  

B. If the premiums cover more than the premiums paid for medical insurance​ (i.e. premiums paid for supplementary medical insurance for the aged under the Social Security Act and premiums paid for qualified​ long-term care insurance​ contracts) and the cost of the separate items are not identified as a component of the total​ premium, then none of the premiums are deductible.

C. When any amounts paid are included in the​ employee's gross income.

D. When the premiums paid also cover other individuals other than the taxpayer​ (i.e. spouse,​ children).

Answer 1

Q-4
Statement				Answer	Reason
Investment interest expense which is disallowed because it exceeds the​ taxpayer's net investment income may be carried over and treated as incurred in subsequent years.				True. This statement is TRUE	The IRS says, you can only take a deduction for investment interest expenses that is lesser than or equal to your net investment income. The IRS does allow you to carry forward the disallowed deduction into future years, however. but the same restrictions continue to apply. You must have net investment income to deduct qualifying investment interest.

Q-6

In what cases are medical insurance premiums paid by an individual not deductible as qualified medical​ expenses?

Your answer is When any amounts paid are included in the​ employee's gross income.