Question 1

Business energy tax credits are available to businesses that invest in energy-conserving solar energy properties.

Accepted Answer

A) True 
 B)False

Question 2

An example of an AMT tax preference item is the excess of MACRS depreciation on equipment over depreciation computed by using the the 150% declining balance method.

Accepted Answer

A) True 
 B)False

Question 3

Rex has the following AMT adjustment factors:
-Depreciation of real property acquired in 1996 using MACRS is $22,000 while depreciation for AMT purposes is $15,000.
-R&E expenditures amounting to $60,000 are expensed.
The net adjustment is

Accepted Answer

A)  $7,000. 
B)  $54,000. 
C)  $61,000. 
D)  $67,000. 
A)  $7,000. 
B)  $54,000. 
C)  $61,000. 
D)  $67,000.

Question 4

All of the following are allowable deductions under the alternative minimum tax except

Accepted Answer

A)  charitable contributions. 
B)  gambling losses. 
C)  qualified housing interest. 
D)  state income taxes. 
A)  charitable contributions. 
B)  gambling losses. 
C)  qualified housing interest. 
D)  state income taxes.

Question 5

Nonrefundable tax credits

Accepted Answer

A)  only offset a taxpayer's tax liability in the current year. 
B)  may only be used if the taxpayer is receiving a refund. 
C)  can be carried back two years and carried forward 15 years if they exceed tax liability in the current year. 
D)  allow the excess over the taxpayer's tax liability to be paid to the taxpayer. 
A)  only offset a taxpayer's tax liability in the current year. 
B)  may only be used if the taxpayer is receiving a refund. 
C)  can be carried back two years and carried forward 15 years if they exceed tax liability in the current year. 
D)  allow the excess over the taxpayer's tax liability to be paid to the taxpayer.

Question 6

A credit is available to encourage employers to provide child care for employees.The employer can either operate its own child care facility for its employees or pay a separate qualified child care facility under contract.

Accepted Answer

A) True 
 B)False

Question 7

Yulia has some funds that she wishes to invest,but is concerned that she is at risk for AMT.Yulia should avoid investing in all municipal bonds.

Accepted Answer

A) True 
 B)False

Business energy tax credits are available to businesses that invest in energy-conserving solar energy properties.

An example of an AMT tax preference item is the excess of MACRS depreciation on equipment over depreciation computed by using the the 150% declining balance method.

Rex has the following AMT adjustment factors: -Depreciation of real property acquired in 1996 using MACRS is $22,000 while depreciation for AMT purposes is $15,000. -R&E expenditures amounting to $60,000 are expensed. The net adjustment is

All of the following are allowable deductions under the alternative minimum tax except

Nonrefundable tax credits

A credit is available to encourage employers to provide child care for employees.The employer can either operate its own child care facility for its employees or pay a separate qualified child care facility under contract.

Yulia has some funds that she wishes to invest,but is concerned that she is at risk for AMT.Yulia should avoid investing in all municipal bonds.

An Introduction to Taxation

Determination of Tax

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

Tax Research

Corporations

Partnerships and S Corporations

Taxes and Investment Planning

Filters

Exam 14: Special Tax Computation Methods, tax Credits, and Payment of Tax

Business energy tax credits are available to businesses that invest in energy-conserving solar energy properties.

An example of an AMT tax preference item is the excess of MACRS depreciation on equipment over depreciation computed by using the the 150% declining balance method.

Rex has the following AMT adjustment factors: -Depreciation of real property acquired in 1996 using MACRS is $22,000 while depreciation for AMT purposes is $15,000. -R&E expenditures amounting to $60,000 are expensed. The net adjustment is

All of the following are allowable deductions under the alternative minimum tax except

Nonrefundable tax credits

A credit is available to encourage employers to provide child care for employees.The employer can either operate its own child care facility for its employees or pay a separate qualified child care facility under contract.

Yulia has some funds that she wishes to invest,but is concerned that she is at risk for AMT.Yulia should avoid investing in all municipal bonds.

An Introduction to Taxation

Determination of Tax

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

Tax Research

Corporations

Partnerships and S Corporations

Taxes and Investment Planning

Filters