Sample Exam 1 Flashcards
The distributive share of a partnership’s operating loss that is deductible by an individual partner is limited to .
the adjusted basis of his or her partnership interest
The maximum tax rate on long-term capital gains is generally ___ percent under current law.
20
“Collectibles” gain is taxed at
28 percent maximum rate
The portion of long-term gain attributable to unrecaptured depreciation is subject to a ____ percent maximum rate when real estate is sold
25
Up to $_____of net capital losses ($____ if married filing separately) may be used to offset ordinary income in any given year.
3000/1500
Assets in the 5-year property class are subject to a ______ convention.
half year
The convention for the year the property is placed in service ____ apply in the year in which the property is disposed of.
does
A “_____” convention applies if more than 40 percent of all property placed in service by a taxpayer during the year and otherwise qualifying for the “_____” convention is placed in service during the last 3 months of the taxable year.
Midquarter/half-year
Real estate is subject to a “_____” convention
mid-month
personal exemption amount is
indexed for inflation
kiddie tax is applicable to the ____ of children under a specified age
net unearned income
The _______ is the only court that will hear a tax case without prior payment of the assessed deficiency.
Tax Court
there are no _____ in the Court of Federal Claims
jury trials
prepayment of the assessed deficiency is _____in the District Court.
required
Tax Court ____ have jury trials
does not
Premiums for the first _____ of group term life insurance coverage are tax free to the employee.
$50,000
A nonbusiness bad debt can be deductible only as a
short-term capital loss.
In order to be treated as a “qualifying child” of the taxpayer for dependency exemption purposes, an individual must
be below the age of 19
The total medical expenses applicable floor of adjusted gross income for taxpayers over 65
7,500
The total medical expenses applicable floor of adjusted gross income for taxpayers under 65
10,000
The ____ tax bracket applies to the first $50,000 of corporate taxable income.
15 percent
________ is the only court in which a taxpayer can have a jury trial in a civil tax case.
The U.S. District Court
The maximum charitable deduction that the taxpayer will be allowed for the current year is
one-half of adjusted gross income
This year an individual taxpayer (other than a married individual filing a separate return) has $30,000 of investment interest expense and $1,000 of net investment income. The maximum amount of investment interest expense this taxpayer may deduct this year is
$1,000