Question 1

All reasonable moving expenses are deductible by employees.

Accepted Answer

A) True 
 B)False

Question 2

This year Tiffanie files as a single taxpayer.Tiffanie received $67,700 of salary and paid $3,200 of qualified educational interest.This year Tiffanie paid moving expenses of $5,000 and received $9,800 of alimony (from her ex-husband,whom she divorced in 2012).What is Tiffanie's AGI?

Accepted Answer

$76,250 ($67,700 + $9,800 − $1,250 = $76

Question 3

Detmer is a successful doctor who earned $204,800 in fees this year,but he also competes in weekend golf tournaments.Detmer reported the following expenses associated with competing in almost a dozen tournaments:
   This year Detmer won $5,200 from competing in various golf tournaments.Assuming that Detmer itemizes his deductions and that he did not have any other miscellaneous itemized deductions,what amount of the golfing expenses are deductible after considering all limitations if the tournament golfing is treated as a hobby activity?

Accepted Answer

$0 Hobby e

Question 4

The deduction for investment interest in excess of the net investment income carries forward to the subsequent year.

Accepted Answer

A) True 
 B)False

Question 5

Claire donated 200 publicly traded shares of stock (held for five years)to her father's nonoperating private foundation this year.The stock was worth $15,000 but Claire's basis was only $4,000.Determine the maximum amount of charitable deduction for the donation if Claire's AGI is $60,000 this year.

Accepted Answer

$12,000 The stock is long-term capital g

Question 6

Which of the following is a true statement?

Accepted Answer

A) Employee business expenses are deducted for AGI. 
B) Investment expenses are typically deducted for AGI. 
C) Tax preparation fees are deducted for AGI. 
D) Rental and royalty expenses are deducted for AGI. 
E) All of these choices are correct. 
A) Employee business expenses are deducted for AGI. 
B) Investment expenses are typically deducted for AGI. 
C) Tax preparation fees are deducted for AGI. 
D) Rental and royalty expenses are deducted for AGI. 
E) All of these choices are correct.

Question 7

An individual who is eligible to be claimed as a dependent on another's return and has $1,000 of earned income may claim a standard deduction of $1,350.

Accepted Answer

A) True 
 B)False

Question 8

This year,Benjamin Hassell paid $20,000 of interest on a mortgage on his home (Benjamin borrowed $600,000 in 2015 to buy the residence and it is currently worth $1,000,000),$12,000 on a $150,000 home-equity loan on his home,and $10,000 of interest on a mortgage on his vacation home (loan of $300,000; home purchased for $400,000 in 2016; home is not rented out at any time).How much interest expense can Benjamin deduct as an itemized deduction?

Accepted Answer

$30,000.Benjamin's acquisition debt incu

Question 9

Larry recorded the following donations this year: $500 cash to a family in need
$2,400 to a church
$500 cash to a political campaign
To the Salvation Army household items that originally cost $1,200 but are worth $300.
What is Larry's maximum allowable charitable contribution if his AGI is $60,000?

Accepted Answer

A) $2,900. 
B) $1,000. 
C) $2,700. 
D) $4,600. 
E) None of the choices are correct. 
A) $2,900. 
B) $1,000. 
C) $2,700. 
D) $4,600. 
E) None of the choices are correct.

Question 10

Margaret Lindley paid $15,000 of interest on her $300,000 acquisition debt for her home (fair market value of $500,000),$4,000 of interest on her $30,000 home-equity loan,$1,000 of credit card interest,and $3,000 of margin interest for the purchase of stock.Assume that Margaret Lindley has $10,000 of interest income this year and no investment expenses.How much of the interest expense may she deduct this year?

Accepted Answer

A) $23,000. 
B) $22,000. 
C) $19,000. 
D) $18,000. 
E) None of the choices are correct. 
A) $23,000. 
B) $22,000. 
C) $19,000. 
D) $18,000. 
E) None of the choices are correct.

Question 11

The profit motive distinguishes "business" activities from "personal" activities.

Accepted Answer

A) True 
 B)False

Question 12

For married taxpayers filing separately,excess business losses are defined as aggregate business deductions over the sum of aggregate business gross income or gain of the taxpayer plus $255,000.

Accepted Answer

A) True 
 B)False

Question 13

All investment expenses are itemized deductions.

Accepted Answer

A) True 
 B)False

Question 14

Opal fell on the ice and injured her hip this winter.As a result she paid $3,000 for a visit to the hospital emergency room and $750 for follow-up visits with her doctor.While she recuperated,Opal paid $500 for prescription medicine and $600 to a therapist for rehabilitation.Insurance reimbursed Opal $1,200 for these expenses.What is the amount of Opal's qualifying medical expense?

Accepted Answer

A) $3,000. 
B) $3,750. 
C) $3,650. 
D) $4,850. 
E) All of these choices are correct. 
A) $3,000. 
B) $3,750. 
C) $3,650. 
D) $4,850. 
E) All of these choices are correct.

Question 15

The deduction to individual taxpayers for charitable contributions paid in cash to public charities is limited to 10 percent of the taxpayer's AGI.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is a true statement?

Accepted Answer

A) The deduction of cash contributions to public charities is limited to 30 percent of AGI. 
B) The deduction of capital gain property to private nonoperating foundations is limited to 50 percent of AGI. 
C) The deduction of capital gain property to public charities is limited to 20 percent of AGI. 
D) The deduction of cash contributions to private nonoperating foundations is limited to 30 percent of AGI. 
E) None of the choices are true. 
A) The deduction of cash contributions to public charities is limited to 30 percent of AGI. 
B) The deduction of capital gain property to private nonoperating foundations is limited to 50 percent of AGI. 
C) The deduction of capital gain property to public charities is limited to 20 percent of AGI. 
D) The deduction of cash contributions to private nonoperating foundations is limited to 30 percent of AGI. 
E) None of the choices are true.

Question 17

Lewis is an unmarried law student at State University,a qualified educational institution.Last year Lewis borrowed $30,000 and used the proceeds to pay his university tuition.This year Lewis paid $1,500 of interest on the loan.Which of the following is a true statement if Lewis reports $40,000 of salary and no other items of income or expense?

Accepted Answer

A) Lewis can deduct all the interest on his student loan for AGI. 
B) Lewis can deduct all the interest on his student loan as an itemized deduction. 
C) Lewis can only deduct $1,000 of the interest on his student loan for AGI. 
D) Lewis can only deduct $1,000 of the interest on his student loan as an itemized deduction. 
E) All of these choices are false. 
A) Lewis can deduct all the interest on his student loan for AGI. 
B) Lewis can deduct all the interest on his student loan as an itemized deduction. 
C) Lewis can only deduct $1,000 of the interest on his student loan for AGI. 
D) Lewis can only deduct $1,000 of the interest on his student loan as an itemized deduction. 
E) All of these choices are false.

Question 18

Generally,service businesses are considered qualified trade or businesses for purposes of the deduction for qualified business income.

Accepted Answer

A) True 
 B)False

All reasonable moving expenses are deductible by employees.

This year Tiffanie files as a single taxpayer.Tiffanie received $67,700 of salary and paid $3,200 of qualified educational interest.This year Tiffanie paid moving expenses of $5,000 and received $9,800 of alimony (from her ex-husband,whom she divorced in 2012).What is Tiffanie's AGI?

The deduction for investment interest in excess of the net investment income carries forward to the subsequent year.

Claire donated 200 publicly traded shares of stock (held for five years)to her father's nonoperating private foundation this year.The stock was worth $15,000 but Claire's basis was only $4,000.Determine the maximum amount of charitable deduction for the donation if Claire's AGI is $60,000 this year.

Which of the following is a true statement?

An individual who is eligible to be claimed as a dependent on another's return and has $1,000 of earned income may claim a standard deduction of $1,350.

Larry recorded the following donations this year: $500 cash to a family in need $2,400 to a church $500 cash to a political campaign To the Salvation Army household items that originally cost $1,200 but are worth $300. What is Larry's maximum allowable charitable contribution if his AGI is $60,000?

The profit motive distinguishes "business" activities from "personal" activities.

For married taxpayers filing separately,excess business losses are defined as aggregate business deductions over the sum of aggregate business gross income or gain of the taxpayer plus $255,000.

All investment expenses are itemized deductions.

The deduction to individual taxpayers for charitable contributions paid in cash to public charities is limited to 10 percent of the taxpayer's AGI.

Which of the following is a true statement?

Generally,service businesses are considered qualified trade or businesses for purposes of the deduction for qualified business income.

An Introduction to Tax

Tax Compliance,the Irs,and Tax Authorities

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview,dependents,and Filing Status

Gross Income and Exclusions

Investments

Individual Income Tax Computation and Tax Credits

Business Income,deductions,and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Compensation

Retirement Savings and Deferred Compensation

Tax Consequences of Home Ownership

Entities Overview

Corporate Operations

Accounting for Income Taxes

Corporate Taxation: Nonliquidating Distributions

Corporate Formation,reorganization,and Liquidation

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

State and Local Taxes

The Ustaxation of Multinational Transactions

Transfer Taxes and Wealth Planning

Filters

Exam 6: Individual Deductions

All reasonable moving expenses are deductible by employees.

This year Tiffanie files as a single taxpayer.Tiffanie received $67,700 of salary and paid $3,200 of qualified educational interest.This year Tiffanie paid moving expenses of $5,000 and received $9,800 of alimony (from her ex-husband,whom she divorced in 2012).What is Tiffanie's AGI?

The deduction for investment interest in excess of the net investment income carries forward to the subsequent year.

Which of the following is a true statement?

An individual who is eligible to be claimed as a dependent on another's return and has $1,000 of earned income may claim a standard deduction of $1,350.

Larry recorded the following donations this year: $500 cash to a family in need $2,400 to a church $500 cash to a political campaign To the Salvation Army household items that originally cost $1,200 but are worth $300. What is Larry's maximum allowable charitable contribution if his AGI is $60,000?

The profit motive distinguishes "business" activities from "personal" activities.

For married taxpayers filing separately,excess business losses are defined as aggregate business deductions over the sum of aggregate business gross income or gain of the taxpayer plus $255,000.

All investment expenses are itemized deductions.

The deduction to individual taxpayers for charitable contributions paid in cash to public charities is limited to 10 percent of the taxpayer's AGI.

Which of the following is a true statement?

Generally,service businesses are considered qualified trade or businesses for purposes of the deduction for qualified business income.

An Introduction to Tax

Tax Compliance,the Irs,and Tax Authorities

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview,dependents,and Filing Status

Gross Income and Exclusions

Investments

Individual Income Tax Computation and Tax Credits

Business Income,deductions,and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Compensation

Retirement Savings and Deferred Compensation

Tax Consequences of Home Ownership

Entities Overview

Corporate Operations

Accounting for Income Taxes

Corporate Taxation: Nonliquidating Distributions

Corporate Formation,reorganization,and Liquidation

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

State and Local Taxes

The Ustaxation of Multinational Transactions

Transfer Taxes and Wealth Planning

Filters