Exam 4: Business Income and Expenses Part II

Thelma works at a liquor store in 2016 and makes $44,000. She also has dividend income of $12,000 and interest income of $1,000. She owns a beach house that gives her $11,000 in net rental income and she owns a stake in a limited partnership that generates a $15,000 loss. What is her adjusted gross income in 2016?

(Multiple Choice)

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Question 41

Wilson and Joan, both in their 30s, file a joint income tax return for 2016. Wilson's wages are $15,000 and Joan's wages are $23,000 for the year. Their total adjusted gross income is $38,000, and Joan is covered by a qualified pension plan at work but Wilson is not. a. What is the maximum amount that Wilson and Joan may each deduct for contributions to their individual retirement accounts? b. If Joan's wages are $88,000 for 2016, instead of $23,000, and their adjusted gross income is $103,000, what is the maximum amount that Wilson and Joan may each deduct for contributions to their individual retirement accounts?

(Essay)

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Question 42

If a Section 401(k) plan allows an employee to choose between a direct payment of compensation in cash or a contribution to the retirement plan, the plan is not a "qualified" plan.

(True/False)

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Question 43

Which of the following is not a test which must be met to qualify for the moving expense deduction?

(Multiple Choice)

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Question 44

Johnice's employer contributes $3,000 to a qualified retirement plan in 2016 for Johnice's retirement. a.Is the $3,000 deductible by Johnice's employer in 2016? Explain. b.Is the $3,000 income to Johnice in 2016? Explain. c.Is either the interest or dividend earnings on the $3,000 contribution taxable to Johnice in 2016? Explain.

(Essay)

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Question 45

Choose the correct statement. Passive losses

(Multiple Choice)

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Question 46

Patrick owns a home on the beach in Daytona. He lives in the house for most of the year but leaves town during the popular motor sports race that comes through every year. During that time, he rents his home out for 3 weeks to race fans for $5,000. Which of the following is true?

(Multiple Choice)

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Question 47

Which of the following is true about the self-employed health insurance deduction?

(Multiple Choice)

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Question 48

Ellen supports her family as a self-employed attorney. She reports $90,000 of income on her Schedule C and pays $8,000 for health insurance for her family, $2,500 for dental insurance, $4,000 for health insurance for her 23-year-old daughter who is no longer a dependent, and $3,000 for disability insurance for herself. What is Ellen's self-employed health insurance deduction?

(Multiple Choice)

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Question 49

Donald owns a two-family home. He rents out the first floor and resides on the second floor. The following expenses attributable to the total building were incurred by Donald for the year ended December 31, 2016: In addition, the depreciation attributable to the entire building would be $2,000. What is the total amount of the expenses that Donald can deduct on Schedule E of Form 1040 (before any limitations)?

(Multiple Choice)

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Question 50

In 2016, all taxpayers may make a deductible or nondeductible contribution to an IRA.

(True/False)

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Question 51

Jody is a physician (not covered by a retirement plan) with a salary of $40,000 from the hospital where she is employed. She supports her husband, Andre, who sells art work and has no earned income. Both are in their twenties. What is the maximum total amount that Jody and Andre may contribute to their IRAs and deduct for the 2016 tax year?

(Multiple Choice)

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Question 52

A 42-year-old single taxpayer earning a salary of $134,000 a year can make which of the following IRA contributions if he is not covered by a plan at work?

(Multiple Choice)

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Question 53

A taxpayer must make contributions to a regular or Roth IRA prior to the end of the year in order to claim the deduction for that year.

(True/False)

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Question 54

Ralph has a $130,000 IRA with the Red Association. For personal reasons, he decides to move his funds to the Blue Association. He requests that his funds be distributed to him on August 20, 20xx. a.What amount will Ralph receive from the Red Association? b.What is the last day Ralph can deposit the funds from the Red Association and avoid taxation in the current year? c.If the funds were distributed from a qualified retirement plan (not an IRA), how much would Ralph receive? d.Assuming the funds were distributed from a qualified retirement plan, not an IRA, how much will Ralph have to contribute to the Blue Association to avoid taxable income and any penalties?

(Essay)

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Question 55

Since a contribution to an IRA is a voluntary action, a taxpayer may withdraw amounts from an IRA at any time without penalty.

(True/False)

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Question 56

John is a single 40-year-old landscape architect earning $125,000 a year and is not covered by a pension plan at work. How much can he put into a Traditional IRA in 2016?

(Essay)

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Question 57

Selma owns a beach cottage that she rents to tourists. In the current year she rented the cottage for 90 days. What is the maximum number of days Selma can use the cottage before her expense deduction will be limited to her gross rental income?

(Multiple Choice)

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(79)

Question 58

Christian, a single taxpayer, acquired a rental house in 2003. The rental house, which Christian actively manages, generated a $15,000 loss in 2016. In addition, Christian owns a limited partnership interest which he acquired in 2008. His share of the partnership loss for 2016 is $10,000. Christian has modified adjusted gross income, before the rental loss and partnership loss, of $134,000. What is the amount of these losses that Christian may deduct in 2016?

(Essay)

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Question 59

Debbie is 63 years old and retired in 2014. She receives Social Security payments of $12,000 a year and interest income of $30,000. She wishes to put the maximum allowed into an IRA. How much can she contribute to her IRA?

(Essay)

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Question 60

Showing 41 - 60 of 97

If a Section 401(k) plan allows an employee to choose between a direct payment of compensation in cash or a contribution to the retirement plan, the plan is not a "qualified" plan.

Which of the following is not a test which must be met to qualify for the moving expense deduction?

Choose the correct statement. Passive losses

Patrick owns a home on the beach in Daytona. He lives in the house for most of the year but leaves town during the popular motor sports race that comes through every year. During that time, he rents his home out for 3 weeks to race fans for $5,000. Which of the following is true?

Which of the following is true about the self-employed health insurance deduction?

In 2016, all taxpayers may make a deductible or nondeductible contribution to an IRA.

A 42-year-old single taxpayer earning a salary of $134,000 a year can make which of the following IRA contributions if he is not covered by a plan at work?

A taxpayer must make contributions to a regular or Roth IRA prior to the end of the year in order to claim the deduction for that year.

Since a contribution to an IRA is a voluntary action, a taxpayer may withdraw amounts from an IRA at any time without penalty.

John is a single 40-year-old landscape architect earning $125,000 a year and is not covered by a pension plan at work. How much can he put into a Traditional IRA in 2016?

Selma owns a beach cottage that she rents to tourists. In the current year she rented the cottage for 90 days. What is the maximum number of days Selma can use the cottage before her expense deduction will be limited to her gross rental income?

Debbie is 63 years old and retired in 2014. She receives Social Security payments of $12,000 a year and interest income of $30,000. She wishes to put the maximum allowed into an IRA. How much can she contribute to her IRA?

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses Part I

Itemized Deductions and Other Incentives

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Withholding Estimated Payments and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Exam 4: Business Income and Expenses Part II

If a Section 401(k) plan allows an employee to choose between a direct payment of compensation in cash or a contribution to the retirement plan, the plan is not a "qualified" plan.

Which of the following is not a test which must be met to qualify for the moving expense deduction?

Choose the correct statement. Passive losses

Patrick owns a home on the beach in Daytona. He lives in the house for most of the year but leaves town during the popular motor sports race that comes through every year. During that time, he rents his home out for 3 weeks to race fans for $5,000. Which of the following is true?

Which of the following is true about the self-employed health insurance deduction?

In 2016, all taxpayers may make a deductible or nondeductible contribution to an IRA.

A 42-year-old single taxpayer earning a salary of $134,000 a year can make which of the following IRA contributions if he is not covered by a plan at work?

A taxpayer must make contributions to a regular or Roth IRA prior to the end of the year in order to claim the deduction for that year.

Since a contribution to an IRA is a voluntary action, a taxpayer may withdraw amounts from an IRA at any time without penalty.

John is a single 40-year-old landscape architect earning $125,000 a year and is not covered by a pension plan at work. How much can he put into a Traditional IRA in 2016?

Selma owns a beach cottage that she rents to tourists. In the current year she rented the cottage for 90 days.​ What is the maximum number of days Selma can use the cottage before her expense deduction will be limited to her gross rental income?

Debbie is 63 years old and retired in 2014. She receives Social Security payments of $12,000 a year and interest income of $30,000. She wishes to put the maximum allowed into an IRA. How much can she contribute to her IRA?

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses Part I

Itemized Deductions and Other Incentives

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Withholding Estimated Payments and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Selma owns a beach cottage that she rents to tourists. In the current year she rented the cottage for 90 days. What is the maximum number of days Selma can use the cottage before her expense deduction will be limited to her gross rental income?