R1 M4 Adjustments

Question 1

The Roman had deducted $ 2,000 of state income taxes in the prior year, all of which resulted in federal tax savings. What does that mean?

Answer 1

They itemized their deduction.

Question 2

What form will input ordinary dividend and qualified dividend (receive preferential tax treatment , usually are at a lower tax rate)

Answer 2

FORM 1040

Question 3

Is municipal bond interest taxable?

Answer 3

No, but you would report it under the “Tax-exempt Interest”

Question 4

What form do you fill rental income?

Answer 4

Schedule E

Question 5

Will you enter Real estate taxes on personal residence as adjustment if not what would that be

Answer 5

Real estate taxes on person residence are itemized and they would be entered in Schedule A as an itemized deduction.

Question 6

Is federal income tax taxable?

Answer 6

Federal income tax is not taxable

Question 7

What schedule is rental real estate property tax done on?

Answer 7

Schedule E and it is taxable

Question 8

What schedule is real estate tax paid on personal residence done on?

Answer 8

Schedule A ( Itemized Deduction)