Practice Quiz Sig Only

Question 1

Are capital losses included in gross income?

Answer 1

yes

Question 2

Are compensatory damages included in gross income?

Answer 2

no

Question 3

Is real estate taxes below the line for deduction

Answer 3

yes

Question 4

Is home mortgage interest paid a below the line deduction

Answer 4

yes

Question 5

Are medical expenses paid a below the line deduction

Answer 5

yes

Question 6

Is investment interest expense below the line for a deduction

Answer 6

yes

Question 7

Can you deduct money for surrogate parenting costs

Answer 7

No

Question 8

What rate is a PSC taxed at

Answer 8

21%

Question 9

Does basis in a partnership include bank loans to business

Answer 9

yes

Question 10

Does basis in an S corp include bank loans

Answer 10

No just capital and person loans of owners

Question 11

Is form 1120-S for taxes on an S corp?

Answer 11

No just informative

Question 12

When a corporation fails what items are included in basis?

Answer 12

Cash by shareholder
Loans made by shareholder
unearned income retained by corp

Question 13

Is unearned income retrained in a corporation phantom income?

Answer 13

yes

Question 14

How much can a corporation deduct of tangible property?

Answer 14

up to income.

Question 15

What is adjusted basis on a property

Answer 15

Price paid - depreciation.

Question 16

Whats the recognized gain on a like kind exchange

Answer 16

realized gain or boot (lessor of)

Question 17

What is realized gain on a like kind exchange?

Answer 17

Total FMV prop ACQUIRED + Boot - Adj basis current

Question 18

Are material and active participation exceptions to passive losses

Answer 18

yes

Question 19

If a couple gets divorced towards the end of the year are they deemed single for that current entire tax year?

Answer 19

yes

Question 20

Is payment into an x spouses IRA qualifiable as alimony?

Answer 20

yes

Question 21

Could a TIP produce phantom income

Answer 21

yes

Question 22

Could an LP produce phantom income

Answer 22

yes

Question 23

Could a strip produce phantom income

Answer 23

yes

Question 24

Can diversified growth and income funds produce phantom income?

Answer 24

yes

Question 25

What amount is FICA and what does it consist of?

Answer 25

7.65%, Social Security and Medicare tax

Question 26

Is K1 income added to income from a GP?

Answer 26

yes

Question 27

Can a business deduct up to net profits

Answer 27

yes

Question 28

How much can you deduct under active participation rules?

Answer 28

25,000

Question 29

How much per year can you exclude for for employer provided child care?

Answer 29

up to 5,000

Question 30

Is self employment tax based on the gross income

Answer 30

yes

Question 31

What is an inventory cost method?

Answer 31

LIFO

Question 32

Which type of depletion method is used for AMT calculation?

Answer 32

%

Question 33

Are wages from an S-Corp SE income

Answer 33

No

Question 34

Are wages from an S-Corp subject to Fica?

Answer 34

yes

Question 35

What percentage of dividends can be deducted if corporation owns between 20-80%

Answer 35

65% exclusion

Question 36

What percentage of dividends can be deducted if a corporation owns !00% of another

Answer 36

80%

Question 37

Can S corps claim NOLs?

Answer 37

No distributions every year.

Question 38

Can estates and trusts claim NOLs?

Answer 38

yes

Question 39

What tax form is 1041 used by?

Answer 39

trusts and estates