Exam 4: Business Income and Expenses Part II

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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Question 21

Donald rents out his vacation home for 9 months and lives in his vacation home for the remainder of the year.His gross rental income for 2017 is $7,200.The expenses attributable to the vacation home for the entire year are as follows: What amount would Donald report as net income or loss from the rental of the vacation home?

(Essay)

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(93)

Question 22

What is the amount of the deductible HSA for each of the following taxpayers? a.Amelia and Albert,both age 43,have a qualifying high-deductible insurance plan.They contribute $5,700 to a family HSA. b.Betsy,who is single,72 years old and covered by Medicare,wants to contribute the maximum amount to an HSA. c.Carlo has health insurance through his employer which has low deductible amounts.He is 34 years old and is married.Carlo wants to contribute the maximum to an HSA. d.Diane is 57 years old.She has a qualifying high-deductible insurance plan.She has contributed $5,350 to her HSA.

(Essay)

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Question 23

In most cases,an individual taxpayer reports rental income and the related expenses on Schedule E.

(True/False)

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Question 24

In 2017,all taxpayers may make a deductible or nondeductible contribution to an IRA.

(True/False)

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Question 25

Dividend income is considered "passive income."

(True/False)

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Question 26

Donald,a 40-year-old married taxpayer,has a salary of $55,000 and interest income of $6,000.He is an active participant in his employer's pension plan.What is the maximum amount Donald can contribute to a Roth IRA in 2017?

(Multiple Choice)

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Question 27

Unreimbursed qualifying moving expenses are an itemized deduction for 2017.

(True/False)

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Question 28

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 29

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 30

Which of the following statements is true of a distribution rollover (not a trustee-to-trustee transfer)from a retirement plan?

(Multiple Choice)

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Question 31

For purposes of the passive loss rules,income is classified into three separate categories.What are the three categories of individual income? Give an example of each. (1) (2) (3)

(Essay)

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Question 32

A taxpayer who is under 50 years of age and not an active participant in a retirement plan may make a contribution of up to $5,500 to an IRA,subject to the earned income limitation.

(True/False)

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Question 33

Jim lives in California.What is Jim's deadline for making a contribution to traditional IRA or a Roth IRA for 2017?

(Multiple Choice)

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Question 34

Steven is 27 years old and has a total AGI of $110,000 in 2017.He contracts pneumonia in 2017 and incurs a medical bill that totals $7,500.He withdraws $7,500 from his traditional IRA to pay the bill.Which of the following is true?

(Multiple Choice)

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Question 35

What percentage of medical insurance payments can self-employed taxpayers deduct for adjusted gross income on their 2017 tax returns,assuming their self-employment income exceeds their medical insurance payments?

(Multiple Choice)

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Question 36

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 2017?

(Essay)

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(80)

Question 37

Gary and Charlotte incurred the following expenses in connection with Gary's job transfer from Florida to South Carolina: How much is their qualified moving expense?

(Essay)

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Question 38

Carmen owns a house that she rents out for $600 per month.Her expenses for the 2017 tax year are as follows: Carmen bought the property in March of 2003,and her basis for depreciation on the house is $110,000.She uses straight-line depreciation with a 27 ½ -year life,so the depreciation on the house is $4,000.Calculate Carmen's net income or loss from renting the house if her gross rental income is $7,200 ($600 × 12 months).

(Essay)

4.8/5

(86)

Question 39

Mike and Rose are married and file jointly.Mike earns $45,000 from wages and Rose reports $450 on her Schedule C as an artist.Since Mike's work does not offer health insurance,Rose pays the following health insurance premiums from her business account: How much can Mike and Rose deduct as self-employed health insurance?

(Essay)

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(87)

Question 40

Showing 21 - 40 of 96

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?

In most cases,an individual taxpayer reports rental income and the related expenses on Schedule E.

In 2017,all taxpayers may make a deductible or nondeductible contribution to an IRA.

Dividend income is considered "passive income."

Donald,a 40-year-old married taxpayer,has a salary of $55,000 and interest income of $6,000.He is an active participant in his employer's pension plan.What is the maximum amount Donald can contribute to a Roth IRA in 2017?

Unreimbursed qualifying moving expenses are an itemized deduction for 2017.

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.

Which of the following statements is true of a distribution rollover (not a trustee-to-trustee transfer)from a retirement plan?

For purposes of the passive loss rules,income is classified into three separate categories.What are the three categories of individual income? Give an example of each. (1) (2) (3)

A taxpayer who is under 50 years of age and not an active participant in a retirement plan may make a contribution of up to $5,500 to an IRA,subject to the earned income limitation.

Jim lives in California.What is Jim's deadline for making a contribution to traditional IRA or a Roth IRA for 2017?

Steven is 27 years old and has a total AGI of $110,000 in 2017.He contracts pneumonia in 2017 and incurs a medical bill that totals $7,500.He withdraws $7,500 from his traditional IRA to pay the bill.Which of the following is true?

What percentage of medical insurance payments can self-employed taxpayers deduct for adjusted gross income on their 2017 tax returns,assuming their self-employment income exceeds their medical insurance payments?

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 2017?

Gary and Charlotte incurred the following expenses in connection with Gary's job transfer from Florida to South Carolina: How much is their qualified moving expense?

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

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?

In most cases,an individual taxpayer reports rental income and the related expenses on Schedule E.

In 2017,all taxpayers may make a deductible or nondeductible contribution to an IRA.

Dividend income is considered "passive income."

Donald,a 40-year-old married taxpayer,has a salary of $55,000 and interest income of $6,000.He is an active participant in his employer's pension plan.What is the maximum amount Donald can contribute to a Roth IRA in 2017?

Unreimbursed qualifying moving expenses are an itemized deduction for 2017.

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.

Which of the following statements is true of a distribution rollover (not a trustee-to-trustee transfer)from a retirement plan?

For purposes of the passive loss rules,income is classified into three separate categories.What are the three categories of individual income? Give an example of each. (1) (2) (3)

A taxpayer who is under 50 years of age and not an active participant in a retirement plan may make a contribution of up to $5,500 to an IRA,subject to the earned income limitation.

Jim lives in California.What is Jim's deadline for making a contribution to traditional IRA or a Roth IRA for 2017?

Steven is 27 years old and has a total AGI of $110,000 in 2017.He contracts pneumonia in 2017 and incurs a medical bill that totals $7,500.He withdraws $7,500 from his traditional IRA to pay the bill.Which of the following is true?

What percentage of medical insurance payments can self-employed taxpayers deduct for adjusted gross income on their 2017 tax returns,assuming their self-employment income exceeds their medical insurance payments? ​

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 2017?

Gary and Charlotte incurred the following expenses in connection with Gary's job transfer from Florida to South Carolina: How much is their qualified moving expense?

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?

What percentage of medical insurance payments can self-employed taxpayers deduct for adjusted gross income on their 2017 tax returns,assuming their self-employment income exceeds their medical insurance payments?