Question 1

Which of the following expense items is(are)deductible as rental expense for a rental property?

Accepted Answer

A)  Travel related to the property 
B)  Management fees 
C)  Repairs and maintenance 
D)  All are deductible expenses 
A)  Travel related to the property 
B)  Management fees 
C)  Repairs and maintenance 
D)  All are deductible expenses

Question 2

Explain the three categories that a rental activity may fall under if used for both personal and rental purposes.How are the categories determined?

Accepted Answer

Rental property can be categorized as pr

Question 3

Which of the following is not considered a flow-through entity?

Accepted Answer

A)  Limited liability company. 
B)  Sole proprietorship. 
C)  Partnership. 
D)  S corporation. 
A)  Limited liability company. 
B)  Sole proprietorship. 
C)  Partnership. 
D)  S corporation.

Question 4

Which of the following statements is not true about vacation home properties?

Accepted Answer

A)  Property rented for 15 days or more and used for personal use for 14 days or less would be categorized as primarily rental 
B)  A property rented for 15 days or more and used for personal use for more than 14 days would be categorized as personal/rental 
C)  A property categorized as primarily personal is rented for 0 days 
D)  A primarily personal property does not need to report the income from the property 
A)  Property rented for 15 days or more and used for personal use for 14 days or less would be categorized as primarily rental 
B)  A property rented for 15 days or more and used for personal use for more than 14 days would be categorized as personal/rental 
C)  A property categorized as primarily personal is rented for 0 days 
D)  A primarily personal property does not need to report the income from the property

Question 5

Reggie and Bebe own an apartment building in Portland,Oregon,with 8 identical units.They live in one and rent the remaining units.Their rental income for the year was $45,000.They incurred the following expenses for the entire building:   What amount of net income should Reggie and Bebe report for the current year for this rental? (Round your answer to the nearest whole dollar)

Accepted Answer

A)  $7,650 
B)  $12,213 
C)  $38,350 
D)  $45,000 
A)  $7,650 
B)  $12,213 
C)  $38,350 
D)  $45,000

Question 6

What criteria determine a personal and rental use property as personal/rental? How is net income or loss treated for tax purposes for a personal/rental property?

Accepted Answer

If a property is rented for 15 days or m

Question 7

Assume the same facts as #71,but Meredith rented her house (at fair value)to her brother and his family for 9 days (in addition to her personal use)and total days rented was 180 days.How is the cabin categorized now? Explain your answer.

Accepted Answer

The cabin is now categorized as personal

Question 8

Which of the following entity(ies)is(are)considered flow-through?

Accepted Answer

A)  C corporation 
B)  Sole proprietorship 
C)  Publicly traded corporation 
D)  S corporation 
A)  C corporation 
B)  Sole proprietorship 
C)  Publicly traded corporation 
D)  S corporation

Question 9

On June 1 of the current year,Jack and Angie purchased a rental beach house for $900,000 and rented it right away.Of that amount,$600,000 was for the land value.How much depreciation deduction can Jack and Angie take in the current year? (You may need to refer to the depreciation tables.)

Accepted Answer

A)  $5,910 
B)  $10,909 
C)  $11,820 
D)  $17,730 
A)  $5,910 
B)  $10,909 
C)  $11,820 
D)  $17,730

Question 10

Which of the following expense items is(are)deductible as rental expense?

Accepted Answer

A)  Property taxes. 
B)  Depreciation. 
C)  Insurance. 
D)  All are deductible rental expenses. 
A)  Property taxes. 
B)  Depreciation. 
C)  Insurance. 
D)  All are deductible rental expenses.

Which of the following expense items is(are)deductible as rental expense for a rental property?

Explain the three categories that a rental activity may fall under if used for both personal and rental purposes.How are the categories determined?

Which of the following is not considered a flow-through entity?

Which of the following statements is not true about vacation home properties?

What criteria determine a personal and rental use property as personal/rental? How is net income or loss treated for tax purposes for a personal/rental property?

Assume the same facts as #71,but Meredith rented her house (at fair value)to her brother and his family for 9 days (in addition to her personal use)and total days rented was 180 days.How is the cabin categorized now? Explain your answer.

Which of the following entity(ies)is(are)considered flow-through?

On June 1 of the current year,Jack and Angie purchased a rental beach house for $900,000 and rented it right away.Of that amount,$600,000 was for the land value.How much depreciation deduction can Jack and Angie take in the current year? (You may need to refer to the depreciation tables.)

Which of the following expense items is(are)deductible as rental expense?

Introduction to Taxation, the Income Tax Formula, and Form 1040ez

Expanded Tax Formula, Forms 1040a and 1040, and Basic Concepts

Gross Income: Inclusions and Exclusions

Adjustments for Adjusted Gross Income

Itemized Deductions

Self-Employed Business Income

Capital Gains and Other Sales of Property

Tax Credits

Payroll Taxes

Retirement and Other Tax-Deferred Plans and Annuities

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Partnership Taxation

Corporate Taxation

Filters

Exam 8: Rental Property, Royalties, and Income From Flow-Through Entities

Which of the following expense items is(are)deductible as rental expense for a rental property?

Explain the three categories that a rental activity may fall under if used for both personal and rental purposes.How are the categories determined?

Which of the following is not considered a flow-through entity?

Which of the following statements is not true about vacation home properties?

What criteria determine a personal and rental use property as personal/rental? How is net income or loss treated for tax purposes for a personal/rental property?

Assume the same facts as #71,but Meredith rented her house (at fair value)to her brother and his family for 9 days (in addition to her personal use)and total days rented was 180 days.How is the cabin categorized now? Explain your answer.

Which of the following entity(ies)is(are)considered flow-through?

On June 1 of the current year,Jack and Angie purchased a rental beach house for $900,000 and rented it right away.Of that amount,$600,000 was for the land value.How much depreciation deduction can Jack and Angie take in the current year? (You may need to refer to the depreciation tables.)

Which of the following expense items is(are)deductible as rental expense?

Introduction to Taxation, the Income Tax Formula, and Form 1040ez

Expanded Tax Formula, Forms 1040a and 1040, and Basic Concepts

Gross Income: Inclusions and Exclusions

Adjustments for Adjusted Gross Income

Itemized Deductions

Self-Employed Business Income

Capital Gains and Other Sales of Property

Tax Credits

Payroll Taxes

Retirement and Other Tax-Deferred Plans and Annuities

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Partnership Taxation

Corporate Taxation

Filters