Spencer paid the following taxes this year. \[\begin{array} { l l } \text { Federal incometax } & \$ 12,034 \\ \text { Federal ermployee payroll tax } & \$ 4,590 \\ \text { State ard local income tax } & \$ 5,725 \\ \text { State and local sales tax } & \$ 2,998 \\ \text { Local property tax on personal residence } & \$ 3,300 \end{array}\] Compute Spencer's itemized deduction for taxes.

A) $5,725 B) $13,615 C) $9,025 D) $12,023 A) $5,725 B) $13,615 C) $9,025 D) $12,023

Mr. and Mrs. Hunt, ages 38 and 33, have the following allowable itemized deductions this year. \[\begin{array} { l r } \text { Medical experses } & \$ 3,200 \\ \text { State and local taxes } & \$ 7,000 \\ \text { Casualty loss } & \$ 4,000 \\ \text { Charitable contributions } & \$ 3,500 \\ \text { Miscellareous iternized deductions } & \$ 225 \end{array}\]

Determine the effect on the amount of ea

Mr. Jain paid the following taxes this year. \[\begin{array} { l c } \text { Federal incometax } & \$ 32,450 \\ \text { Federal self-employment tax } & \$ 7,921 \\ \text { State ard local incorne tax } & \$ 3,450 \\ \text { State ard local sales tax } & \$ 4,060 \\ \text { Local property tax on principal residence } & \$ 4,320 \\ \text { Local property tax on investrnent land } & \$ 1,880 \\ \text { Local property tax on two autornobiles } & \$ 750 \end{array}\]

Compute Mr. Jain's itemized deduction fo

Exam 17: Tax Consequences of Personal Activities

Mr. and Mrs. Nguyen, ages 71 and 61, reported $70,200 AGI and were allowed a $6,400 itemized medical expense deduction this year. Compute their medical expense deduction for alternative minimum tax (AMT) purposes.

(Multiple Choice)

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(75)

Question 21

Mr. and Mrs. Trent divorced last year. Pursuant to the divorce, Mr. Trent transferred marketable securities (FMV $100,000; basis $67,000) to Mrs. Trent. This year, Mrs. Trent sold the securities for $112,000. Which of the following statements is true?

(Multiple Choice)

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(67)

Question 22

Spencer paid the following taxes this year. Federal incometax \ 12,034 Federal ermployee payroll tax \ 4,590 State ard local income tax \ 5,725 State and local sales tax \ 2,998 Local property tax on personal residence \ 3,300 Compute Spencer's itemized deduction for taxes.

(Multiple Choice)

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(92)

Question 23

Mary Stone, a single individual, sold a personal residence on June 3, 2015, and excluded her $93,600 gain from gross income. If she sells another personal residence before June 4, 2017, she can exclude a maximum of $156,400 of any gain.

(True/False)

4.9/5

(67)

Question 24

Which of the following deductions is disallowed in the computation of alternative minimum taxable income (AMTI)?

(Multiple Choice)

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Question 25

Mr. Haugh owns a sporting goods store as a sole proprietorship. This year, he donated baseball equipment (bats, gloves, balls) to the local YMCA to use in their community sports programs. His cost basis in the inventory items was $45,700, and their retail value was $68,200. Which of the following statements about this donation is true?

(Multiple Choice)

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Question 26

Mr. and Mrs. Hunt, ages 38 and 33, have the following allowable itemized deductions this year. Medical experses \ 3,200 State and local taxes \ 7,000 Casualty loss \ 4,000 Charitable contributions \ 3,500 Miscellareous iternized deductions \ 225

(Essay)

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Question 27

Three years ago, Suzanne bought a new personal automobile for $26,900. This year, she sold it for $19,000. What is the amount and character of Suzanne's recognized loss?

(Multiple Choice)

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(90)

Question 28

A taxpayer must purchase a new personal residence in order to exclude any gain from the sale of the old residence.

(True/False)

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(71)

Question 29

Which of the following expenditures is not a medical expense for federal tax purposes?

(Multiple Choice)

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(91)

Question 30

Mr. and Mrs. Shohler received $25,200 Social Security benefits this year. Their only other source of income was Mrs. Shohler's $10,479 taxable pension from her former employer. How much of their Social Security is included in gross income?

(Multiple Choice)

4.9/5

(88)

Question 31

Mr. Jain paid the following taxes this year. Federal incometax \ 32,450 Federal self-employment tax \ 7,921 State ard local incorne tax \ 3,450 State ard local sales tax \ 4,060 Local property tax on principal residence \ 4,320 Local property tax on investrnent land \ 1,880 Local property tax on two autornobiles \ 750

(Essay)

4.8/5

(60)

Question 32

Damage to a personal residence by a tornado is an example of a casualty loss.

(True/False)

4.8/5

(80)

Question 33

The federal income tax system provides incentives for individual taxpayers to meet their housing needs by purchasing instead of renting a home.

(True/False)

4.8/5

(85)

Question 34

A child of divorced parents is considered a dependent of the parent with custody unless that parent agrees to allow the noncustodial parent to claim the dependency exemption.

(True/False)

4.8/5

(87)

Question 35

Lori owns a vacation home that she rents out for about three months each year. Her deduction for expenses allocable to the rental periods is limited to her gross rental income.

(True/False)

4.8/5

(81)

Question 36

Dotty, age 45, incurred the following medical expenses this year. Payments to physiciars ard dentists $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\$ 4,300$ Payment for two-day stay at Mercy Hospital $\quad$ $\quad$ $\$ 6,250$ Payments to physical therapist $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\$ 2,100$ Prescription drugs $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\$ 1,010$ Dotty's insurance company reimbursed her for $8,800 of these expenses. If Dotty's AGI is $35,400, compute her medical expense deduction.

(Multiple Choice)

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(84)

Question 37

Mrs. Kronin received $16,200 child support payments from her former husband. These payments are excluded from Mrs. Kronin's gross income.

(True/False)

4.8/5

(75)

Question 38

The cost of commuting to and from a place of employment is a nondeductible personal expense.

(True/False)

4.8/5

(79)

Question 39

Which of the following items is not included in the recipient's gross income?

(Multiple Choice)

4.9/5

(78)

Question 40

Showing 21 - 40 of 93

Mr. and Mrs. Nguyen, ages 71 and 61, reported $70,200 AGI and were allowed a $6,400 itemized medical expense deduction this year. Compute their medical expense deduction for alternative minimum tax (AMT) purposes.

Mr. and Mrs. Trent divorced last year. Pursuant to the divorce, Mr. Trent transferred marketable securities (FMV $100,000; basis $67,000) to Mrs. Trent. This year, Mrs. Trent sold the securities for $112,000. Which of the following statements is true?

Spencer paid the following taxes this year. Federal incometax \ 12,034 Federal ermployee payroll tax \ 4,590 State ard local income tax \ 5,725 State and local sales tax \ 2,998 Local property tax on personal residence \ 3,300 Compute Spencer's itemized deduction for taxes.

Mary Stone, a single individual, sold a personal residence on June 3, 2015, and excluded her $93,600 gain from gross income. If she sells another personal residence before June 4, 2017, she can exclude a maximum of $156,400 of any gain.

Which of the following deductions is disallowed in the computation of alternative minimum taxable income (AMTI)?

Mr. and Mrs. Hunt, ages 38 and 33, have the following allowable itemized deductions this year. Medical experses \ 3,200 State and local taxes \ 7,000 Casualty loss \ 4,000 Charitable contributions \ 3,500 Miscellareous iternized deductions \ 225

Three years ago, Suzanne bought a new personal automobile for $26,900. This year, she sold it for $19,000. What is the amount and character of Suzanne's recognized loss?

A taxpayer must purchase a new personal residence in order to exclude any gain from the sale of the old residence.

Which of the following expenditures is not a medical expense for federal tax purposes?

Mr. and Mrs. Shohler received $25,200 Social Security benefits this year. Their only other source of income was Mrs. Shohler's $10,479 taxable pension from her former employer. How much of their Social Security is included in gross income?

Damage to a personal residence by a tornado is an example of a casualty loss.

The federal income tax system provides incentives for individual taxpayers to meet their housing needs by purchasing instead of renting a home.

A child of divorced parents is considered a dependent of the parent with custody unless that parent agrees to allow the noncustodial parent to claim the dependency exemption.

Lori owns a vacation home that she rents out for about three months each year. Her deduction for expenses allocable to the rental periods is limited to her gross rental income.

Mrs. Kronin received $16,200 child support payments from her former husband. These payments are excluded from Mrs. Kronin's gross income.

The cost of commuting to and from a place of employment is a nondeductible personal expense.

Which of the following items is not included in the recipient's gross income?

Taxes and Taxing Jurisdictions

Policy Standards for a Good Tax

Taxes As Transaction Costs

Maxims of Income Tax Planning

Tax Research

Taxable Income From Business Operations

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Nontaxable Exchanges

Sole Proprietorships, Partnerships, Llcs, and S Corporations

The Corporate Taxpayer

The Choice of Business Entity

Jurisdictional Issues in Business Taxation

The Individual Tax Formula

Compensation and Retirement Planning

Investment and Personal Financial Planning

The Tax Compliance Process

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