Mod 23, 35, 36, 37 Quiz

Question 1

Domestic services

Answer 1

Household employees

Question 2

Withholding federal income taxes for household employees is required…2

Answer 2

1 Only if requested by employee and

2 agreed by employer

Question 3

Withholding for household employees (domestic services) would be reported on…2

Answer 3

1 Schedule H and

2 filed with form 1040

Question 4

When property is repossessed after an installment sale, the taxpayer must…2

Answer 4

1 figure the gain or loss on repossession and

2 basis of repossessed property

Question 5

The difference between depreciation computed under MACRS and the alternative depreciation system (ADS) is…

Answer 5

An adjustment which is a deferral item

Question 6

Deferral items are…

Answer 6

Preferences and adjustments which can be expected to reverse

In future years

Question 7

When a taxpayer pays AMT that is due to deferral items, he or she is…

Answer 7

Allowed AMT credit in succeeding years against his or her regular
tax

Question 8

When a home is sold for a loss, what are 4 costs paid that would result in a loss for tax purposes?

Answer 8

1 insurance
2 taxes
3 utilities
4 maintenance and repairs