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REG - Becker > Gross Income - Part 1 > Flashcards

Gross Income - Part 1 Flashcards

1
Q

All forms of unemployment compensation are included as part of gross income: TRUE or FALSE

A

TRUE

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2
Q

Workers’ compensation for a job-related injury is included as part of gross income: TRUE or FALSE

A

FALSE

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3
Q

Alimony on divorce agreements is not included in income and also not deductible by the payor if it was executed after what date?

A

December 31, 2018

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4
Q

The first $XX,XXX of group term life insurance is a nontaxable fringe benefit.

A

$50,000

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5
Q

Qualified higher education expenses are tuition fees required for the enrollment or attendance of:
A. Taxpayer
B. Taxpayer’s spouse
C. Any dependent for whom TP is allowed a dependency exemption

A

All

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6
Q

Which of the following is an adjustment to AGI:
A. Alimony paid to spouse for divorce in 2019
B. Child support paid to spouse for divorce in 2018
C. Alimony paid to spouse for divorce in 2018
D. Child support paid to spouse for divorce in 2019

A

C. Alimony paid to spouse for divorce in 2018

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7
Q

For post-1989 Series EE bonds, one of the tax exemption requirements is if the TP is over the age of 30 upon issuance of bonds: TRUE or FALSE

A

FALSE. Over the age of 24

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8
Q

For post-1989 Series EE bonds, one of the tax exemption requirements is that the purchaser of the bonds must be the sole owner of the bonds (or joint owner with his or her spouse): TRUE or FALSE

A

TRUE

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9
Q

Payment to a graduate assistant for a part-time teaching assistant at a university is non-taxable: TRUE or FALSE

A

FALSE. Taxable

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10
Q

TP on either cash or accrual method must recognize gains or losses on a year-end sale of listed stock on:

A. Settlement date
B. Trade date
C. Delivery of stock certificate

A

B. Trade date

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11
Q 
Scholarships are nontaxable for degree-seeking students to the extent that the proceeds are spent on the following, except:
A. Tuition
B. Fees
C. Board and lodging
D. Books and supplies
A

C. Board and lodging

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12
Q

Under the tax benefit rule, state income tax refund is not taxable in the current year if the TP itemized their deduction in the prior year: TRUE or FALSE

A

FALSE. Taxable in CY if itemized deduction in the PY

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13
Q

When the corporation is the owner and beneficiary of a life insurance on the life on an officer, the proceeds are taxable and the premiums are deductible for the corporation: TRUE or FALSE

A

FALSE. Proceeds are nontaxable and premiums are not deductible.

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14
Q

Cash from property settlements as a result of a divorce is taxable: TRUE or FALSE

A

FALSE

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15
Q

Alimony includes payments received in:
A. Cash or its equivalent
B. Property
C. Services

A

A only

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16
Q

The value of employer-provided parking up to $465 per month may be excluded by an employee (2019 rules apply): TRUE or FALSE

A

FALSE. $265

17
Q

Interest exclusion of Series EE Savings Bond interest is subject to a phase-out: TRUE or FALSE

A

TRUE

18
Q

Exclusion for US Series EE Savings Bond interest is available for married TP filing separately: TRUE or FALSE

A

FALSE

19
Q

An employed TP is not subject to an early withdrawal penalty if TP used the amount for medical insurance: TRUE or FALSE

A

FALSE. Only if TP is unemployed for 12 consecutive weeks

20
Q

Up to what amount may be excluded from gross income for payments made by an employer on behalf of an employee for employee’s educational expenses?

A

$5,250

21
Q

What is the exclusion from gain for qualified single individuals for sale of personal residence if TP owned and used home as personal residence for 2 of the 5 years prior to sale?

A

$250,000

22
Q

Damages received as compensation for personal (physical) injuries are excluded from gross income: TRUE or FALSE

A

TRUE

23
Q

Damages received as compensation for non-physical injuries are excluded from gross income: TRUE or FALSE

A

FALSE

24
Q

Award related to medical expenses paid due to a personal (physical) injury are taxable: TRUE or FALSE

A

FALSE. Excluded from GI

25
Q

Payments received from an accident insurance policy are excluded from gross income if the TP paid all the premiums for the insurance: TRUE or FALSE

A

TRUE

26
Q

Amounts paid to a degree candidate for participation in university-sponsored research (e.g., grant to a PhD candidate) is excluded from gross income: TRUE or FALSE

A

FALSE. No exclusion in the tax law.

27
Q

Cash from property settlements is included in gross income for divorce finalized on or before 12/31/2018: TRUE or FALSE

A

FALSE

28
Q

Early distribution from an IRA to purchase a principal residence is included in the gross income even though it is not subject to penalty tax: TRUE or FALSE

A

TRUE

29
Q

Under a non-accountable plan of employee expense reimbursements, only the amount spent with proof is included in the employee’s gross income: TRUE or FALSE

A

FALSE. The total amount is included in the gross income

REG - Becker (10 decks)

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