Sim

Question 1

QBI DEDUCTION

Answer 1

20%

Question 2

Nondeductible expenses

Answer 2

Penalty and fines

Question 3

S corporation

Answer 3

Ordinary business income formula: sales -cogs -wages - repair and maintance - macrd depreciation - payroll taxes - business insurance

Question 4

Separated stated items formula

Answer 4

Charitable contribution + bank interest income + capital loss on sale land

Question 5

Shareholder basis calculation

Answer 5

Beginning basis + ordinary business income - separately ststed tsxabke income and deductible expense items - nondeductible expense * 50% ownership in s corporation - (shareholder distributions * 50% ownership s corporation

Question 6

Traditional IRA

Answer 6

Not part not part of adjusted gross income calculation

Question 7

Contribution to the capital of an S corporation

Answer 7

Not part of AGI calculation

Question 8

Prior year AMT paid in the current year

Answer 8

Not part of AGI calculation

Question 9

Dividend paid are reported on

Answer 9

Schedule m-2 analysis lf unappropriated retained earning per books, and do not generate a book/tax difference

Question 10

Accrued contribution paid on the extended tax return filing date

Answer 10

Is not deductible for tax

Question 11

Amount at risk

Answer 11

Cash investment + investor share of recourse debt

Question 12

Loss to be deducted

Answer 12

25,000 rental real state loss allowed - (modified adjusted gross income - 100,000 phase out * 50%)

Question 13

Amount at risk

Answer 13

Cash investment - share of year 2 loss

Question 14

Sale on principal residence

Answer 14

250,000 exclusion

Question 15

Schedule k-1

Answer 15

1. Deduct 50%
2. Do not include depreciation
3. Do not include retirement plans

Question 16

Form 1065

Answer 16

1. Do not include interest income

2. Do not include charitable contributions