Question 1

Earnings on nondeductible IRA contributions are allowed to accumulate tax-free until they are withdrawn.

Accepted Answer

A) True 
 B)False

Question 2

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 2017 tax year?

Accepted Answer

A) $5,500 
B) $5,000 
C) $11,000 
D) $10,000 
E) None of the above 
A) $5,500 
B) $5,000 
C) $11,000 
D) $10,000 
E) None of the above

Question 3

Penny,age 52,takes a distribution of $30,000 from her Traditional IRA account.She plans to deposit it in an IRA with a different bank.Shortly after the distribution she drives her car through the front window of her credit union in a freak accident,and uses the funds to pay for the damages.What income and/or penalties related to the failure to rollover the IRA must she show on her tax return ?

Accepted Answer

Penny must report the full $30,000 distr

Question 4

Selma owns a beach cottage that she rents to tourists.In the current year she rented the cottage for 180 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?​

Accepted Answer

A) ​0 days 
B) ​9 days 
C) ​14 days 
D) ​18 days 
A) ​0 days 
B) ​9 days 
C) ​14 days 
D) ​18 days

Question 5

Over the years Monica contributed $15,000 to a Roth IRA opened 10 years ago.The IRA has a current value of $37,500.She is 54 years old and takes a distribution of $25,000.How much of the distribution will be taxable to Monica?

Accepted Answer

A) $0 
B) $10,000 
C) $15,000 
D) $25,000 
E) $37,500 
A) $0 
B) $10,000 
C) $15,000 
D) $25,000 
E) $37,500

Question 6

Subject to the annual dollar limitation and the earned income limitation,deductible IRA contributions are allowed for all taxpayers who do not participate in a qualified retirement plan.

Accepted Answer

A) True 
 B)False

Question 7

Warren invested in a limited partnership tax shelter in 2010.During 2017,his losses from the partnership amount to $100,000.If Warren has no passive income,what is the amount of Warren's deduction for passive losses for 2017?

Accepted Answer

A) $0 
B) $10,000 
C) $20,000 
D) $40,000 
E) None of the above 
A) $0 
B) $10,000 
C) $20,000 
D) $40,000 
E) None of the above

Question 8

Mort is the owner of an apartment building containing ten identical apartments.Mort resides in one apartment and rents out the remaining units.For 2017,the following information is available: What amount should Mort report as net rental income for 2017?
  ​

Accepted Answer

A) $12,750 
B) $13,500 
C) $13,750 
D) $14,400 
E) None of the above 
A) $12,750 
B) $13,500 
C) $13,750 
D) $14,400 
E) None of the above

Question 9

Ben is a 19-year-old single software inventor earning $200,000 a year and is not covered by a pension plan at work.How much can he put into a Roth IRA in 2017?

Accepted Answer

$0.He is over the in

Question 10

Miki,who is single and 57 years old,has a quaifying high-deductible insurance plan.She had the following transactions with her HSA during the year:
a.How much may Miki claim as a deduction for adjusted gross income?
b.What is the amount that Miki must report on her federal income tax return as income from her HSA?
c.How much is subject to a penalty? What is the penalty percentage?

Accepted Answer

a.$3,450.The limit including a catch-up

Question 11

To qualify for the moving expense deduction,an employee must change job sites,move a required distance,and change employers.

Accepted Answer

A) True 
 B)False

Question 12

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?

Accepted Answer

a.$130,000
b.October

Question 13

The expenses associated with the rental of a residence used for both personal and rental purposes are subject to three possible tax treatments.Which of the following is not included as one of the three?

Accepted Answer

A) If a residence is rented for fewer than 15 days during the year the rental period is disregarded and the residence is regarded as a personal residence for tax purposes. 
B) If the residence is rented for 15 days or more and is used for personal purposes for not more than 14 days or 10 percent of the days rented,whichever is greater,the residence is treated as rental property. 
C) If the residence is rented for 15 days or more and is used for personal purposes for not more than 14 days or 10 percent of the days rented,whichever is greater,the residence is treated as a personal residence for tax purposes. 
D) If the residence is rented for 15 days or more and is used for personal purposes for more than 14 days or 10 percent of the days rented,whichever is greater,allocable rental expenses are allowed only to the extent of rental income. 
A) If a residence is rented for fewer than 15 days during the year the rental period is disregarded and the residence is regarded as a personal residence for tax purposes. 
B) If the residence is rented for 15 days or more and is used for personal purposes for not more than 14 days or 10 percent of the days rented,whichever is greater,the residence is treated as rental property. 
C) If the residence is rented for 15 days or more and is used for personal purposes for not more than 14 days or 10 percent of the days rented,whichever is greater,the residence is treated as a personal residence for tax purposes. 
D) If the residence is rented for 15 days or more and is used for personal purposes for more than 14 days or 10 percent of the days rented,whichever is greater,allocable rental expenses are allowed only to the extent of rental income.

Question 14

Paul earns $55,000 during the current year.His employer contributes $3,000 during the year to a qualified retirement plan on behalf of Paul.The amount of the contribution for the year is based on Paul's desire to have a monthly retirement benefit of $3,500.What type of retirement plan is this?

Accepted Answer

A) Defined benefit plan 
B) Defined contribution plan 
C) Employee earnings plan 
D) Profit sharing plan 
E) None of the above 
A) Defined benefit plan 
B) Defined contribution plan 
C) Employee earnings plan 
D) Profit sharing plan 
E) None of the above

Question 15

XYZ Corporation has assigned Allison to inspect their zipper manufacturing plant in China for the next 4 months.Allison has incurred the following expenses:
How much may Allison deduct as moving expenses?

Accepted Answer

$0.Since Allison is assigned t

Question 16

Lester rents his vacation home for 6 months and lives in the home during the other 6 months of 2017.The gross rental income from the home is $4,500.For the entire year,real estate taxes are $800,interest is $3,000,utilities and maintenance expenses are $2,200,and depreciation expense on the entire home would be $4,000.What is Lester's allowable net loss from renting his vacation home?

Accepted Answer

A) $5,500 loss 
B) $3,000 loss 
C) $500 loss 
D) $250 loss 
E) None of the above 
A) $5,500 loss 
B) $3,000 loss 
C) $500 loss 
D) $250 loss 
E) None of the above

Question 17

Under a defined contribution plan,the contribution made on behalf of the employee is determined using a formula dependent on the employee's current compensation.

Accepted Answer

A) True 
 B)False

Question 18

Arnold purchased two rental properties 6 years ago.He actively participates in their management.During 2017,Arnold had income of $22,000 from one of the rentals.He had a loss from the other rental of $32,000,as well as salary income of $35,000,and dividend income of $2,000.What is Arnold's net passive income or loss deduction?

Accepted Answer

A) $8,000 net loss 
B) $10,000 net loss 
C) $22,000 net loss 
D) $32,000 net loss 
E) None of the above 
A) $8,000 net loss 
B) $10,000 net loss 
C) $22,000 net loss 
D) $32,000 net loss 
E) None of the above

Question 19

When a residence is rented for less than 15 days during the year,the rental income is excluded from gross income.

Accepted Answer

A) True 
 B)False

Question 20

Ursula,an employee of Ficus Corporation,is 35 years old and plans to retire in 20 years.The corporation has a qualified retirement plan and contributes $2,000 during 2017 for Ursula.How should Ursula treat the $2,000 contribution made on her behalf by the corporation?

Accepted Answer

A) The $2,000 and any earnings thereon must be included in Ursula's 2017 gross income. 
B) Only the earnings on the $2,000 contribution must be included in Ursula's 2017 gross income. 
C) Ursula is not required to include either the $2,000 contribution or the earnings thereon in her 2017 gross income. 
D) Ursula must include only $100 (1/20 of the $2,000 contribution)in her gross income for 2017,but the same amount must be included in gross income for the following 19 years. 
E) None of the above. 
A) The $2,000 and any earnings thereon must be included in Ursula's 2017 gross income. 
B) Only the earnings on the $2,000 contribution must be included in Ursula's 2017 gross income. 
C) Ursula is not required to include either the $2,000 contribution or the earnings thereon in her 2017 gross income. 
D) Ursula must include only $100 (1/20 of the $2,000 contribution)in her gross income for 2017,but the same amount must be included in gross income for the following 19 years. 
E) None of the above.

Earnings on nondeductible IRA contributions are allowed to accumulate tax-free until they are withdrawn.

Selma owns a beach cottage that she rents to tourists.In the current year she rented the cottage for 180 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?

Over the years Monica contributed $15,000 to a Roth IRA opened 10 years ago.The IRA has a current value of $37,500.She is 54 years old and takes a distribution of $25,000.How much of the distribution will be taxable to Monica?

Subject to the annual dollar limitation and the earned income limitation,deductible IRA contributions are allowed for all taxpayers who do not participate in a qualified retirement plan.

Warren invested in a limited partnership tax shelter in 2010.During 2017,his losses from the partnership amount to $100,000.If Warren has no passive income,what is the amount of Warren's deduction for passive losses for 2017?

Mort is the owner of an apartment building containing ten identical apartments.Mort resides in one apartment and rents out the remaining units.For 2017,the following information is available: What amount should Mort report as net rental income for 2017?

Ben is a 19-year-old single software inventor earning $200,000 a year and is not covered by a pension plan at work.How much can he put into a Roth IRA in 2017?

To qualify for the moving expense deduction,an employee must change job sites,move a required distance,and change employers.

The expenses associated with the rental of a residence used for both personal and rental purposes are subject to three possible tax treatments.Which of the following is not included as one of the three?

Paul earns $55,000 during the current year.His employer contributes $3,000 during the year to a qualified retirement plan on behalf of Paul.The amount of the contribution for the year is based on Paul's desire to have a monthly retirement benefit of $3,500.What type of retirement plan is this?

XYZ Corporation has assigned Allison to inspect their zipper manufacturing plant in China for the next 4 months.Allison has incurred the following expenses: How much may Allison deduct as moving expenses?

Under a defined contribution plan,the contribution made on behalf of the employee is determined using a formula dependent on the employee's current compensation.

When a residence is rented for less than 15 days during the year,the rental income is excluded from gross income.

Ursula,an employee of Ficus Corporation,is 35 years old and plans to retire in 20 years.The corporation has a qualified retirement plan and contributes $2,000 during 2017 for Ursula.How should Ursula treat the $2,000 contribution made on her behalf by the corporation?

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

Earnings on nondeductible IRA contributions are allowed to accumulate tax-free until they are withdrawn.

Selma owns a beach cottage that she rents to tourists.In the current year she rented the cottage for 180 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?​

Over the years Monica contributed $15,000 to a Roth IRA opened 10 years ago.The IRA has a current value of $37,500.She is 54 years old and takes a distribution of $25,000.How much of the distribution will be taxable to Monica?

Subject to the annual dollar limitation and the earned income limitation,deductible IRA contributions are allowed for all taxpayers who do not participate in a qualified retirement plan.

Warren invested in a limited partnership tax shelter in 2010.During 2017,his losses from the partnership amount to $100,000.If Warren has no passive income,what is the amount of Warren's deduction for passive losses for 2017?

Mort is the owner of an apartment building containing ten identical apartments.Mort resides in one apartment and rents out the remaining units.For 2017,the following information is available: What amount should Mort report as net rental income for 2017? ​

Ben is a 19-year-old single software inventor earning $200,000 a year and is not covered by a pension plan at work.How much can he put into a Roth IRA in 2017?

To qualify for the moving expense deduction,an employee must change job sites,move a required distance,and change employers.

The expenses associated with the rental of a residence used for both personal and rental purposes are subject to three possible tax treatments.Which of the following is not included as one of the three?

Paul earns $55,000 during the current year.His employer contributes $3,000 during the year to a qualified retirement plan on behalf of Paul.The amount of the contribution for the year is based on Paul's desire to have a monthly retirement benefit of $3,500.What type of retirement plan is this?

XYZ Corporation has assigned Allison to inspect their zipper manufacturing plant in China for the next 4 months.Allison has incurred the following expenses: How much may Allison deduct as moving expenses?

Under a defined contribution plan,the contribution made on behalf of the employee is determined using a formula dependent on the employee's current compensation.

When a residence is rented for less than 15 days during the year,the rental income is excluded from gross income.

Ursula,an employee of Ficus Corporation,is 35 years old and plans to retire in 20 years.The corporation has a qualified retirement plan and contributes $2,000 during 2017 for Ursula.How should Ursula treat the $2,000 contribution made on her behalf by the corporation?

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 180 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?

Mort is the owner of an apartment building containing ten identical apartments.Mort resides in one apartment and rents out the remaining units.For 2017,the following information is available: What amount should Mort report as net rental income for 2017?