Question 1

Which of the following relationships does NOT pass the relationship test for a qualifying child?

Accepted Answer

A)  Stepsister's daughter 
B)  Half-brother 
C)  Cousin 
D)  Stepsister 
A)  Stepsister's daughter 
B)  Half-brother 
C)  Cousin 
D)  Stepsister

Question 2

The character of income determines the rate at which the income is taxed.

Accepted Answer

A) True 
 B)False

Question 3

The relationship requirement for qualifying relative requires the potential qualifying relative to have a family relationship with the taxpayer.

Accepted Answer

A) True 
 B)False

Question 4

The Inouyes filed jointly in 2014. Their AGI is $78,000. They reported $16,000 of itemized deductions and they have two children, one of whom qualifies as their dependent. The 2014 standard deduction amount is $12,400 and each exemption is $3,950. What is the total amount of from AGI deductions they are allowed to claim on their 2014 tax return?

Accepted Answer

$27,850, determined as follows:
From AGI

Question 5

Which of the following statements regarding tax deductions is false?

Accepted Answer

A)  Taxpayers are not entitled to any deductions unless specific provisions in the tax code allow the deductions. 
B)  Deductions can be labeled as deductions above the line or deductions below the line. 
C)  From AGI deductions tend to be associated with business activities while for AGI deductions tend to be associated with personal activities. 
D)  The standard deduction is a from AGI deduction. 
A)  Taxpayers are not entitled to any deductions unless specific provisions in the tax code allow the deductions. 
B)  Deductions can be labeled as deductions above the line or deductions below the line. 
C)  From AGI deductions tend to be associated with business activities while for AGI deductions tend to be associated with personal activities. 
D)  The standard deduction is a from AGI deduction.

Question 6

In June of year 1, Jake's wife Darla died. The couple did not have any children and Jake did not remarry in year 1 or year 2. Which is the most favorable filing status for Jake in year 2?

Accepted Answer

A)  Married filing separately 
B)  Single 
C)  Head of household 
D)  Qualifying widower 
A)  Married filing separately 
B)  Single 
C)  Head of household 
D)  Qualifying widower

Which of the following relationships does NOT pass the relationship test for a qualifying child?

The character of income determines the rate at which the income is taxed.

The relationship requirement for qualifying relative requires the potential qualifying relative to have a family relationship with the taxpayer.

Which of the following statements regarding tax deductions is false?

In June of year 1, Jake's wife Darla died. The couple did not have any children and Jake did not remarry in year 1 or year 2. Which is the most favorable filing status for Jake in year 2?

An Introduction to Tax

Tax Compliance, the Irs, and Tax Authorities

Tax Planning Strategies and Related Limitations

Gross Income and Exclusions

Individual Deductions

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Investments

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 Us Taxation of Multinational Transactions

Transfer Taxes and Wealth Planning of the Cfa Institute

Filters

Exam 4: Individual Income Tax Overview, Exemptions, and Filing Status

Which of the following relationships does NOT pass the relationship test for a qualifying child?

The character of income determines the rate at which the income is taxed.

The relationship requirement for qualifying relative requires the potential qualifying relative to have a family relationship with the taxpayer.

Which of the following statements regarding tax deductions is false?

In June of year 1, Jake's wife Darla died. The couple did not have any children and Jake did not remarry in year 1 or year 2. Which is the most favorable filing status for Jake in year 2?

An Introduction to Tax

Tax Compliance, the Irs, and Tax Authorities

Tax Planning Strategies and Related Limitations

Gross Income and Exclusions

Individual Deductions

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Investments

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 Us Taxation of Multinational Transactions

Transfer Taxes and Wealth Planning of the Cfa Institute

Filters