Question 1

If a loss from sale or exchange of property between related parties is disallowed and the property is subsequently sold to an unrelated party,

Accepted Answer

A) An amended return may be filed to claim the loss previously disallowed. 
B) The unrelated party may claim the loss previously disallowed. 
C) The disallowed loss may be used to offset gain on the subsequent sale. 
D) The disallowed loss may be used if there is a further loss on the subsequent sale. 
E) The disallowed loss is lost forever. 
A) An amended return may be filed to claim the loss previously disallowed. 
B) The unrelated party may claim the loss previously disallowed. 
C) The disallowed loss may be used to offset gain on the subsequent sale. 
D) The disallowed loss may be used if there is a further loss on the subsequent sale. 
E) The disallowed loss is lost forever.

Question 2

Becky is a cash basis taxpayer with the following transactions during her calendar tax year: $\begin{array}{llcc}
  \text { Cash basis revenue } &\$54,000\
 \text { Cash basis expenses, except rent } &25,000\
 \text { Rent expense (paid on December 1) for use of a building for 24 months } &24,000\
\end{array}$
 What is the amount of Becky's taxable income from her business for this tax year?

Accepted Answer

A) $7,000 loss 
B) $11,000 
C) $27,500 
D) $28,000 
E) None of these 
A) $7,000 loss 
B) $11,000 
C) $27,500 
D) $28,000 
E) None of these

Question 3

List at least two AMT preferences and/or adjustments and show the simplified formula for calculating AMT. Do not include dollar exemption amounts or the tax rate schedule.

Accepted Answer

(1) Adjustments and preferences would in

Question 4

Mary sells to her father, Robert, her shares in AA Corp for $55,000. The shares cost Mary $80,000. How much loss may Mary claim from the sale?

Accepted Answer

A) $0 
B) $25,000 
C) $55,000 
D) $80,000 
E) None of these is correct 
A) $0 
B) $25,000 
C) $55,000 
D) $80,000 
E) None of these is correct

Question 5

Which of the following is not an adjustment or tax preference item for 2019 for purposes of the individual alternative minimum tax (AMT)?

Accepted Answer

A) State income tax refunds 
B) Certain passive losses 
C) Interest from private activity bonds 
D) Cash charitable contributions 
E) All of these are adjustment or tax preference items for AMT 
A) State income tax refunds 
B) Certain passive losses 
C) Interest from private activity bonds 
D) Cash charitable contributions 
E) All of these are adjustment or tax preference items for AMT

If a loss from sale or exchange of property between related parties is disallowed and the property is subsequently sold to an unrelated party,

List at least two AMT preferences and/or adjustments and show the simplified formula for calculating AMT. Do not include dollar exemption amounts or the tax rate schedule.

Mary sells to her father, Robert, her shares in AA Corp for $55,000. The shares cost Mary $80,000. How much loss may Mary claim from the sale?

Which of the following is not an adjustment or tax preference item for 2019 for purposes of the individual alternative minimum tax (AMT)?

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses

Additional Income and the Qualified Business Income Deduction

Deductions for and From AGI

Tax Credits

Depreciation and Sale of Business Property

Payroll, Estimated Payments and Retirement Plans

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Exam 6: Accounting Periods and Other Taxes

If a loss from sale or exchange of property between related parties is disallowed and the property is subsequently sold to an unrelated party,

List at least two AMT preferences and/or adjustments and show the simplified formula for calculating AMT. Do not include dollar exemption amounts or the tax rate schedule.

Mary sells to her father, Robert, her shares in AA Corp for $55,000. The shares cost Mary $80,000. How much loss may Mary claim from the sale?

Which of the following is not an adjustment or tax preference item for 2019 for purposes of the individual alternative minimum tax (AMT)?

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses

Additional Income and the Qualified Business Income Deduction

Deductions for and From AGI

Tax Credits

Depreciation and Sale of Business Property

Payroll, Estimated Payments and Retirement Plans

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters