Bryant - Course 4. Tax Planning. Comprehensive Course Exam for Tax Planning Flashcards
Any contributions that exceed the deductible gift limitations may be carried over and deducted in the subsequent __ ____??____ __.
* five years
* two years
* three years
* ten years
five years
Any contributions that exceed the deductible gift limitations may be carried over and deducted in the subsequent five years.
The gift to the remainder person is a gift of a __ ____??____ __.
* future interest
* lump sum
* present interest
* disclaimed amount
future interest
- The gift to the remainder person is a gift of a future interest. It therefore cannot qualify for the annual gift tax exclusion.
To be considered a qualifying person for the Child and Dependent Care Credit, a dependent must be under age __ ____??____ __ when the care is provided.
* 16
* 13
* 17
* 24
13
- A qualifying person for the Child and Dependent Care Credit is a dependent who is under age 13 when the care is provided.
If a seller should die prior to receiving all of the scheduled payments using a Self-Cancelling Installment Note (SCIN), the present value of the future payments __ ____??____ __.
* will be included the buyer’s gross estate
* will be divided between the buyer and seller’s gross estates.
* will not be included the seller’s gross estate
* will be included the seller’s gross estate
will not be included the seller’s gross estate
- If a seller should die prior to receiving all of the scheduled payments using a SCIN, the present value of the future payments will not be included the seller’s gross estate.
A taxpayer must first pay the tax deficiency when beginning litigation in which of the following courts? (Select all that apply)
* U.S. Tax Courts
* U.S. District Courts
* U.S. Court of Federal Claims
* U.S. Supreme Court
U.S. District Courts
U.S. Court of Federal Claims
- A taxpayer who wants to litigate either in a U.S. District Court or in the U.S. Court of Federal Claims must first pay the deficiency.
- The taxpayer then files a claim for a refund, which the IRS will deny. A suit for a refund of the taxes must follow this denial. If the taxpayer wins the refund suit, he or she receives a refund of the taxes in question plus interest.
The __ ____??____ __ issues regulations that expound upon the IRC.
* House of Representatives
* Treasury Department
* Ways & Means Committee
* Executive Branch
Treasury Department
- The Treasury Department issues regulations that expound upon the Internal Revenue Code.
- Treasury Regulations often contain examples with computations that provide valuable assistance in understanding the statutory language.
If a taxpayer was already subject to AMT, then the optimal strategy would be to:
I. delay income until an AMT year
II. accelerate allowable itemized deductions in a regular tax year
* I only
* Neither I nor II
* Both I and II
* II only
Neither I nor II
- If a taxpayer was already subject to AMT, then the optimal strategy would be to accelerate income into the AMT year and delay allowable itemized deductions until a regular tax year.
Identify items that would NOT be considered constructively received. (Select all that apply)
* The amount is unavailable to the taxpayer.
* It is subject to substantial limitations or restrictions.
* The payer does not have the funds necessary to make payment.
* Interest credited to a bank savings account.
* Salary available to an employee who does not accept payment
The amount is unavailable to the taxpayer.
It is subject to substantial limitations or restrictions.
The payer does not have the funds necessary to make payment.
- An amount is not constructively received if:
It is subject to substantial limitations or restrictions.
The payer does not have the funds necessary to make payment.
The amount is unavailable to the taxpayer.
Child support payments are categorized as __ ____??____ __.
* exclusions
* deductions
* exemptions
* gross income
exclusions
- An exclusion is a source of income that is omitted from the tax base, whereas a deduction is an expense that is subtracted in arriving at taxable income.
- Child support is categorized as an exclusion.
Choose the filing status(es) that require that the taxpayer has a dependent. (Select all that apply).
* Married filing separately
* Head of household
* Married filing jointly
* Single
* Qualifying widow(er)
Head of household
Qualifying widow(er)
Which of the following requirements must be met to claim a dependency exemption for an individual who is considered a qualifying child? (Select all that apply)
* An earned income test
* A relationship test
* An age test
* An abode test
* A support test
A relationship test
An age test
An abode test
A support test
- To claim a dependency exemption for an individual who is considered a qualifying child, the following additional requirements must be met:
A relationship test
An age test
An abode test
A support test
The passive loss limitation rules apply to:
* Any closely held C corporation
* Any personal service corporation
* Individuals, estates, and trusts
* Certain publicly traded partnerships
Any closely held C corporation
Any personal service corporation
Individuals, estates, and trusts
Certain publicly traded partnerships
* Each of these entities is subject to passive loss rules.
Identify the qualifying like-kind exchange.
* Real property in the U.S. for real property in the U.S.
* Real property in the U.S. for personal-use property in the U.S.
* Personal-use property in the U.S. for personal-use property in the U.S.
* Real property in the U.S. for real property in Canada.
Real property in the U.S. for real property in the U.S.
- In general, IRC Section 1031 does not allow exchanges between a U.S. property and a foreign-based property. The IRC specifically states that property held in the U.S. is not of a like-kind with foreign-held property.
- Under the Tax Cuts and Jobs Act (TCJA), Section 1031 now applies only to exchanges of real property and not to exchanges of personal or intangible property.
Match the type of capital gain or loss to the correct definition.
Short Term Capital Gain (STCG)
Long-Term Capital Gain (LTCG)
Long-Term Capital Loss (LTCL)
Short Term Capital Loss (STCL)
- Asset is held for 12 months or less with a gain
- Asset is held for 12 months or less with a loss
- The capital asset is held for more than 12 months with a gain
- The capital asset is held for more than 12 months with a loss
- Short Term Capital Gain (STCG) - Asset is held for 12 months or less with a gain
- Short Term Capital Loss (STCL) - Asset is held for 12 months or less with a loss
- Long-Term Capital Gain (LTCG) - The capital asset is held for more than 12 months with a gain
- Long-Term Capital Loss (LTCL) - The capital asset is held for more than 12 months with a loss
While representing a client before the IRS, an attorney, CPA, Enrolled Agent, or Enrolled Actuary is morally obliged to __ ____??____ __ of any tax noncompliance, error(s), and/or omission(s) in their case.
* inform the IRS
* advise the client’s financial planner
* issue an itemized list of penalties
* advise the client promptly
advise the client promptly
* The concerned authority is morally obliged to advise the client promptly of the fact of such noncompliance, error, or omission.
Application for permission to change accounting periods is made on __ ____??____ __.
* Form 2553
* Form 8716
* Form 1128
* Form 3115
Form 1128
- Application for permission to change accounting periods is made on Form 1128. The application must be sent to the Commissioner of the IRS, Washington, D.C.
Amounts of alternative minimum tax base exceeding $220,700 are taxed at a rate of __ ____??____ __ in 2023.
* 21%
* 28%
* 25%
* 26%
28%
2023 Tax rate:
* 26% of first $220,700
* 28% of amounts in excess of $220,700