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Question 1

How to calculate AGI

Answer 1

Gross Income - Adjustments = AGI

Question 2

How to calculate Taxable Income

Answer 2

AGI - Deductions = Taxable Income

Question 3

What are the six itemized deductions?

Answer 3

1. Medical Expenses
2. SALT
3. Home Mortgage
4. Interest Expense
5. Charitable Contributions
6. Casualty and Theft Loss

Question 4

Individual Filing Due Date

Answer 4

April 15

Question 5

How long can qualifying widower use those rates?

Answer 5

2 Years

Question 6

In order to be taxable, a gain must be:

Answer 6

Recognized and Realized

Question 7

Requires the accrual or receipt of cash, property, or services

Answer 7

Realized

Question 8

Included in tax returns

Answer 8

Recognized

Question 9

When are meals and lodging not included in taxable income?

Answer 9

When it is a condition of employment

Question 10

Child support is:

Answer 10

Non Taxable

Question 11

Alimony prior to 2019 is:

Answer 11

Income

Question 12

Where is Farm Income Reported

Answer 12

Schedule F

Question 13

Rental Income is reported on:

Answer 13

Schedule E

Question 14

Gambling Winnings:

Answer 14

Included in Gross Income

Question 15

Punitive Damages:

Answer 15

Fully taxable as ordinary income

Question 16

Gifts and Inheritance

Answer 16

Non Taxable

Question 17

Net Income from self employment is computed on:

Answer 17

Schedule C

Question 18

Rental Residence is rented for less than 15 days

Answer 18

Personal Residence

Question 19

LLC and Partnership is reported on:

Answer 19

Form 1065

Question 20

S-Corp is reported on:

Answer 20

Form 1120S

Question 21

Sole Proprietorship is reported on:

Answer 21

Form 1040 Schedule C

Question 22

C-Corp is reported on:

Answer 22

Form 1120

Question 23

Loss can only flow through the owner’s individual income tax return and deducted to the extent that the owner is at-risk

Answer 23

At-Risk Limitation

Question 24

At-Risk Limitations excludes:

Answer 24

Owners share of certain debt

Question 25

How much can you deduct of passive income

Answer 25

$25,000

Question 26

What is the mom and pop rule

Answer 26

1. Actively Participates
2. Owns at least 10%

Question 27

When is mom and pop eliminated

Answer 27

AGI is $150,000+

Question 28

When is mom and pop reduced

Answer 28

AGI over $100,000