Day 23

Question 1

What is the corporations basis in the property? Jason contributes land with a basis of $30k and FMV of $100k. Jason also receives $10k cash for the property?

Answer 1

$40k - adjusted basis plus recognized gain from Jason

MCQ-02284

Question 2

Worker compensation is included in income?

Answer 2

False it is excluded

MCQ-15814

Question 3

True or False: all self-employment income is just to self-employment tax and federal income tax

Answer 3

True

MCQ-03276

Question 4

QBI deduction thresholds for single and MFJ taxpayers

Answer 4

• Single and all others: $170,050 - $220,050
• MFJ: $340,100 - $440,100

MCQ-15650

Question 5

Related party: child sells stock at a higher price, what gain is reported?

Answer 5

Child uses original cost basis from relative bc stock was sold at a higher price than the child’s cost and the relatives basis

MCQ-02208

Question 6

When can a divorced parent claim a child as a dependent?

Answer 6

• The parent that has the most time of custody of the child
• Than highest AGI

MCQ-03187

Question 7

Alex purchased a rental property for $456,000 on July 29, year 6. The land was valued at $90,000. How much depreciation can Alex deduct in year 6?

Answer 7

$456,000 - 90,000 = $366,000

$366,000 / 27.5 = $13,309

$13,309 / 12 x 5.5 months = $6,100

MCQ-02218

Question 8

Gain/Loss Realized =

Answer 8

Amount Realized (FMV of new property + Boot Received) LESS Adjusted Basis of Property given up LESS Boot Paid

MCQ-06419

Question 9

Section 1245 recapture applies to what?

Answer 9

Section 1231 personal property sold at a GAIN with Accumulated Depreciation

MCQ-02333

Question 10

When is a nonbusiness loan deductible on a taxpayers tax return?

Answer 10

When it is totally worthless

MCQ-08971

Question 11

When can a partner deduct operating losses in a partnership?

Answer 11

A taxpayer can deduct partnership losses to the extent of the basis in the in the partnership AFTER DISTRIBUTIONS

MCQ-06168

Question 12

Are Employer contributions to a qualified defined contribution plan taxable income to the Employee?

Answer 12

No they are not included in taxable income UNTIL the are distributed

MCQ-12519

Question 13

What is the holding period for inherited property?

Answer 13

LONG-TERM

MCQ-01998

Question 14

The term Active Participation for a passive activity loss is relevant in relation to what?

Answer 14

Rental Real Estate Activities

Allows the taxpayer to deduct losses from rental activities against other income subject to limitation

MCQ-06161

Question 15

When is Gain recognized in a partnership non-liquidating distribution?

Answer 15

Gain is recognized only to the extent that cash distributed exceeds the Adjusted Basis of the Partner’s Interest in the Partnership

MCQ-08467