R1 Review

Question 1

In the case of noncash income, the amount of income to be reported is

Answer 1

the fair market value of the property or services received.

Question 2

Employer contributions to a qualified traditional defined contribution retirement plan and earnings on the amounts contributed are

Answer 2

not taxable income to the employee until distributed

Question 3

state government obligations.

Answer 3

are not taxed if taxpayers to the standard deduction and taxed if they take the itemized deduction

Question 4

Alimony includes payments

Answer 4

Only in cash and its equivalents (Even if they received cash from the settlement of a property this would not be included.

Question 5

For Roth withdrawals use the

Answer 5

Marginal tax rate

Question 6

Gain or loss on a year-end sale of listed stock arises on the

Answer 6

Trade date

Question 7

Punitive damages received in a personal injury case are

Answer 7

Taxable (Awarded money in physical personal injury is not taxed)

Question 8

A residence is treated as a personal/rental residence if it is

Answer 8

Rented for more than 14 days, and is used for personal purposes for the greater of (1) more than 14 days, or (2) more than 10 percent of the rental days

Question 9

Rental use expenses are only

Answer 9

deductible to the extent of rental income

Question 10

If a taxpayer’s personal property is rented for less than 15 days then.

Answer 10

We do not include the proceeds as taxable income or the expenses as a deduction.

We do include mortgage interest and real estate taxes as an itemized deduction.

Question 11

A guaranteed payment is a

Answer 11

salary or other payment to a partner that is not calculated with respect to partnership income.

These payments are deductible to the corp but taxable to the individual through a K1