Question 1

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?

Accepted Answer

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

Question 2

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?

Accepted Answer

The answer of Donald rents out his vacation home for...

Question 3

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.

Accepted Answer

The answer of What is the amount of the deductible...

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Dividend income is considered "passive income."

Accepted Answer

A) True 
 B)False

Question 7

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?

Accepted Answer

A) $550 
B) $610 
C) $1,220 
D) $3,000 
E) $5,500

Question 8

Unreimbursed qualifying moving expenses are an itemized deduction for 2017.

Accepted Answer

A) True 
 B)False

Question 9

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?

Accepted Answer

A) $8,000 
B) $10,500 
C) $12,000 
D) $14,500 
E) $13,500

Question 10

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.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) The taxpayer must instruct the trustee of the retirement plan to transfer assets to the trustee of another plan. 
B) No withholding is required. 
C) In one year,there is no limit to the number of times a taxpayer can request a distribution rollover from one IRA to another IRA. 
D) Assuming there are no unusual events,the taxpayer has a maximum of 60 days in which to transfer funds to a new plan to avoid current taxes and penalties. 
E) All of the above are true.

Question 12

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)

Accepted Answer

The answer of For purposes of the passive loss rules,income...

Question 13

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.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) April 15,2017 
B) December 31,2017 
C) April 17,2018 
D) October 15,2018

Question 15

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?

Accepted Answer

A) He is not subject to penalties on the IRA withdrawal because it was for medical expenses. 
B) He is not subject to penalties on the IRA withdrawal because he was disabled by pneumonia for 2 weeks. 
C) He is subject to penalties on the IRA withdrawal because a person may not take a withdrawal from a traditional IRA until they are 59 ½ years old no matter what. 
D) He is subject to penalties on the IRA withdrawal because the withdrawal did not cover a portion of medical bills that exceeded 10 percent of his AGI. 
E) None of the above is correct.

Question 16

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? ​

Accepted Answer

A) 60 percent 
B) 70 percent 
C) 50 percent 
D) 90 percent 
E) 100 percent

Question 17

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?

Accepted Answer

The answer of John is a single 40-year-old landscape architect...

Question 18

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?

Accepted Answer

The answer of Gary and Charlotte incurred the following expenses...

Question 19

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).

Accepted Answer

The answer of Carmen owns a house that she rents...

Question 20

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?

Accepted Answer

The answer of Mike and Rose are married and file...

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?

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?

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?