Gross Income - Part 2

Question 1

No self-employment tax (Medicare tax and SS tax) is owed if self-employment income, after multiplying by 92.35% is less than what amount?

Answer 1

$400

Question 2

If a residence is treated as a personal residence, which of the following is deductible:
A. Depreciation
B. Utilities
C. Real estate taxes
D. Repairs

Answer 2

C. Real estate taxes

Question 3

Prepaid rent income is income when received only for cash-basis taxpayer: TRUE or FALSE

Answer 3

FALSE. To both cash-basis and accrual-basis taxpayers.

Question 4

For tax years beginning after 12/31/2017, NOL C/B and C/F rules are:
A. No C/B, 20-year C/F
B. 2-year C/B, indefinite C/F
C. No C/B, indefinite C/F
D. 2-year C/B, 20-year C/F

Answer 4

C. No C/B, indefinite C/F

Question 5

For tax years beginning after 12/31/2019, NOL rules limit utilization for C/B and C/F at what % of taxable income?

Answer 5

80% of taxable income

Question 6

If security deposits are held separately and not available to be applied to last month’s rent (such as in a segregated account), the amount may still be included as income in the year received: TRUE or FALSE

Answer 6

FALSE. Security deposit in such a case is not included as income in the year received.

Question 7

Income subject to self-employment includes amounts from the following, except:
A. General partnerships
B. Limited partnerships
C. Unincorporated sole proprietorship (Schedule C)

Answer 7

B. Limited partnerships

Question 8

A property rented for more than 15 days will be treated as a personal/rental residence if it was also used personally for greater of (1) how many days or (2) >% rental days?

Answer 8

Greater of 14 days or more than 10% of the rental days

Question 9

Deduction for business interest expense is limited to how much % of adjusted taxable income?

Answer 9

30% of adjusted taxable income

Question 10

The limitation on deductible business interest expense applies only to taxpayers with average annual gross receipts of over how much in the prior three taxable years?

Answer 10

Average annual gross receipts of over $25 million for the prior three taxable years

Question 11

What is the percentage of the amount of self-employment income that is considered as net earnings from self-employment?

Answer 11

92.35%

Question 12

The 15.3% self-employment tax is divided between Social Security tax and Medicare tax at what % for each?

Answer 12

12. 4% for Social Security

2. 9% for Medicare