Question 1

Steven and Susie Tyler have three dependent children ages 13,15,and 17.Their modified AGI is $108,000.What is the amount of the child credit to which they are entitled?

Accepted Answer

A)  $0 
B)  $1,000 
C)  $2,000 
D)  $3,000 
A)  $0 
B)  $1,000 
C)  $2,000 
D)  $3,000

Question 2

A qualifying child of the taxpayer must meet the gross income test.

Accepted Answer

A) True 
 B)False

Question 3

A building used in a business is sold after five years of use for a gain.The gain will be treated as a long-term capital gain.

Accepted Answer

A) True 
 B)False

Question 4

In 2017,the standard deduction for a married taxpayer filing a joint return and who is 67 years old with a spouse who is 65 years old is

Accepted Answer

A)  $12,700. 
B)  $13,950. 
C)  $15,200. 
D)  $15,800. 
A)  $12,700. 
B)  $13,950. 
C)  $15,200. 
D)  $15,800.

Question 5

A legally married same-sex couple can file a joint return.

Accepted Answer

A) True 
 B)False

Question 6

Cheryl is claimed as a dependent on her parents' tax return.She had a part-time job during 2017 and earned $4,900 during the year,in addition to $600 of interest income.What is her standard deduction?

Accepted Answer

A)  $1,050 
B)  $4,900 
C)  $5,250 
D)  $6,350 
A)  $1,050 
B)  $4,900 
C)  $5,250 
D)  $6,350

Question 7

Rob is a taxpayer in the top tax bracket,with over a million in taxable income.He plans to sell stock held long term for a $100,000 gain.This sale will result in an increase to his tax liability of

Accepted Answer

A)  $15,000. 
B)  $20,000. 
C)  $39,600. 
D)  $23,800. 
A)  $15,000. 
B)  $20,000. 
C)  $39,600. 
D)  $23,800.

Question 8

Sally divorced her husband three years ago and has not remarried.Since the divorce she has maintained her home in which she and her now sixteen-year-old daughter reside.The daughter is a qualified child.Sally signed the dependency exemption over to her ex-spouse by filing the appropriate IRS form.What is Sally's filing status for the current year and how many exemptions may she claim?

Accepted Answer

A)  single and one 
B)  surviving spouse and one 
C)  head of household and one 
D)  head of household and two 
A)  single and one 
B)  surviving spouse and one 
C)  head of household and one 
D)  head of household and two

Question 9

Paul and Hannah,who are married and file a joint return,are in the process of adopting a child who is born in December 2017.The child,a son,comes to live with them a week after his birth on December 12.The adoption is not finalized until February of 2018.What tax issues are present in this situation?

Accepted Answer

Are Paul and Hannah able to cl

Question 10

One requirement for claiming a dependent as a qualifying relative is that the taxpayer provides more than 50 percent of the dependent's support (assuming it is not a multiple support agreement situation).

Accepted Answer

A) True 
 B)False

Question 11

Ivan Trent,age five,receive $2,900 of dividends per year from a mutual fund he owns; it is his only source of taxable income.Ivan's parents plan to gift a corporate bond they currently own to him.The bond pays $2,100 of interest income per year.The Trent family overall will save taxes if the bond is transferred to the child.

Accepted Answer

A) True 
 B)False

Question 12

Kelly is age 23 and a full-time student with interest and dividend income of $2,600 in the current year.The total cost of her support for the year is $19,000.She is not subject to the kiddie tax.

Accepted Answer

A) True 
 B)False

Question 13

To qualify as an abandoned spouse,the taxpayer is not required to

Accepted Answer

A)  be a U.S. citizen or resident. 
B)  live apart from the spouse for the last six months of the year. 
C)  pay more than half the cost of maintaining the home. 
D)  have a son or daughter in the home for the entire year. 
A)  be a U.S. citizen or resident. 
B)  live apart from the spouse for the last six months of the year. 
C)  pay more than half the cost of maintaining the home. 
D)  have a son or daughter in the home for the entire year.

Question 14

An individual may not qualify for the dependency exemption as a qualifying child but may still qualify as a dependent.

Accepted Answer

A) True 
 B)False

Question 15

Anna is supported entirely by her three sons John,James,and Joseph who provide for her support in the following percentages:
John: 10%,James: 40%,Joseph: 50%
Assuming a multiple support declaration exists,which of the brothers may claim his mother as a dependent?

Accepted Answer

A)  any of the sons 
B)  James or Joseph 
C)  Joseph only 
D)  None of them. 
A)  any of the sons 
B)  James or Joseph 
C)  Joseph only 
D)  None of them.

Question 16

Steve and Jennifer are in the 33% tax bracket for ordinary income and the 15% bracket for capital gains.They have owned several blocks of stock for many years.They are considering the sale of two blocks of stock.The sale of one would produce a gain of $12,000 while the sale of the other would produce a loss of $18,000.For purposes of this problem,ignore personal exemptions,itemized deductions,phase-outs and additional investment taxes.They have no other gains and losses this year.
a.How much tax will they save if they sell the block of stock that produces a loss?
b.How much additional tax will they pay if they sell the block of stock that produces a gain?
c.What will be the impact on their taxes if they sell both blocks of stock?

Accepted Answer

a.$990.A net capital loss is limited to

Question 17

Ryan and Edith file a joint return showing $130,000 of AGI.They have three dependent children ages 7,9,and 13.What is the amount of their child credit?

Accepted Answer

A)  $0 
B)  $1,000 
C)  $2,000 
D)  $3,000 
A)  $0 
B)  $1,000 
C)  $2,000 
D)  $3,000

Question 18

A married person who files a separate return can claim a personal exemption for his spouse if the spouse is not the dependent of another and has

Accepted Answer

A)  gross income that is less than the personal exemption. 
B)  adjusted gross income that is less than the personal exemption. 
C)  no gross income. 
D)  no taxable income. 
A)  gross income that is less than the personal exemption. 
B)  adjusted gross income that is less than the personal exemption. 
C)  no gross income. 
D)  no taxable income.

Question 19

Taxpayers have the choice of claiming either the personal and dependency exemption or itemized deductions.

Accepted Answer

A) True 
 B)False

Question 20

The person claiming a dependency exemption under a multiple support declaration must provide more than 25% of the dependent's support.

Accepted Answer

A) True 
 B)False

Steven and Susie Tyler have three dependent children ages 13,15,and 17.Their modified AGI is $108,000.What is the amount of the child credit to which they are entitled?

A qualifying child of the taxpayer must meet the gross income test.

A building used in a business is sold after five years of use for a gain.The gain will be treated as a long-term capital gain.

In 2017,the standard deduction for a married taxpayer filing a joint return and who is 67 years old with a spouse who is 65 years old is

A legally married same-sex couple can file a joint return.

Cheryl is claimed as a dependent on her parents' tax return.She had a part-time job during 2017 and earned $4,900 during the year,in addition to $600 of interest income.What is her standard deduction?

Rob is a taxpayer in the top tax bracket,with over a million in taxable income.He plans to sell stock held long term for a $100,000 gain.This sale will result in an increase to his tax liability of

One requirement for claiming a dependent as a qualifying relative is that the taxpayer provides more than 50 percent of the dependent's support (assuming it is not a multiple support agreement situation).

Kelly is age 23 and a full-time student with interest and dividend income of $2,600 in the current year.The total cost of her support for the year is $19,000.She is not subject to the kiddie tax.

To qualify as an abandoned spouse,the taxpayer is not required to

An individual may not qualify for the dependency exemption as a qualifying child but may still qualify as a dependent.

Anna is supported entirely by her three sons John,James,and Joseph who provide for her support in the following percentages: John: 10%,James: 40%,Joseph: 50% Assuming a multiple support declaration exists,which of the brothers may claim his mother as a dependent?

Ryan and Edith file a joint return showing $130,000 of AGI.They have three dependent children ages 7,9,and 13.What is the amount of their child credit?

A married person who files a separate return can claim a personal exemption for his spouse if the spouse is not the dependent of another and has

Taxpayers have the choice of claiming either the personal and dependency exemption or itemized deductions.

The person claiming a dependency exemption under a multiple support declaration must provide more than 25% of the dependent's support.

An Introduction to Taxation

Gross Income: Inclusions

Gross Income: Exclusions

Property Transactions: Capital Gains and Losses

Deductions and Losses

Itemized Deductions

Losses and Bad Debts

Employee Expenses and Deferred Compensation

Depreciation, cost Recovery, amortization, and Depletion

Accounting Periods and Methods

Property Transactions: Nontaxable Exchanges

Property Transactions: Sec1231 and Recapture

Special Tax Computation Methods, tax Credits, and Payment of Tax

Tax Research

Corporations

Partnerships and S Corporations

Taxes and Investment Planning

Filters

Exam 2: Determination of Tax

Steven and Susie Tyler have three dependent children ages 13,15,and 17.Their modified AGI is $108,000.What is the amount of the child credit to which they are entitled?

A qualifying child of the taxpayer must meet the gross income test.

A building used in a business is sold after five years of use for a gain.The gain will be treated as a long-term capital gain.

In 2017,the standard deduction for a married taxpayer filing a joint return and who is 67 years old with a spouse who is 65 years old is

A legally married same-sex couple can file a joint return.

Cheryl is claimed as a dependent on her parents' tax return.She had a part-time job during 2017 and earned $4,900 during the year,in addition to $600 of interest income.What is her standard deduction?

Rob is a taxpayer in the top tax bracket,with over a million in taxable income.He plans to sell stock held long term for a $100,000 gain.This sale will result in an increase to his tax liability of

One requirement for claiming a dependent as a qualifying relative is that the taxpayer provides more than 50 percent of the dependent's support (assuming it is not a multiple support agreement situation).

Kelly is age 23 and a full-time student with interest and dividend income of $2,600 in the current year.The total cost of her support for the year is $19,000.She is not subject to the kiddie tax.

To qualify as an abandoned spouse,the taxpayer is not required to

An individual may not qualify for the dependency exemption as a qualifying child but may still qualify as a dependent.

Anna is supported entirely by her three sons John,James,and Joseph who provide for her support in the following percentages: John: 10%,James: 40%,Joseph: 50% Assuming a multiple support declaration exists,which of the brothers may claim his mother as a dependent?

Ryan and Edith file a joint return showing $130,000 of AGI.They have three dependent children ages 7,9,and 13.What is the amount of their child credit?

A married person who files a separate return can claim a personal exemption for his spouse if the spouse is not the dependent of another and has

Taxpayers have the choice of claiming either the personal and dependency exemption or itemized deductions.

The person claiming a dependency exemption under a multiple support declaration must provide more than 25% of the dependent's support.

An Introduction to Taxation

Gross Income: Inclusions

Gross Income: Exclusions

Property Transactions: Capital Gains and Losses

Deductions and Losses

Itemized Deductions

Losses and Bad Debts

Employee Expenses and Deferred Compensation

Depreciation, cost Recovery, amortization, and Depletion

Accounting Periods and Methods

Property Transactions: Nontaxable Exchanges

Property Transactions: Sec1231 and Recapture

Special Tax Computation Methods, tax Credits, and Payment of Tax

Tax Research

Corporations

Partnerships and S Corporations

Taxes and Investment Planning

Filters