Question 1

A legally married same-sex couple can file a joint return.

Accepted Answer

A) True 
 B)False

Question 2

Generally,deductions for (not from)adjusted gross income are personal expenses specifically allowed by tax law.

Accepted Answer

A) True 
 B)False

Question 3

Edward,a widower whose wife died in 2012,maintains a household for himself and his daughter who qualifies as his dependent.Edward's most favorable filing status for 2015 is

Accepted Answer

A) single. 
B) surviving spouse. 
C) head of household. 
D) married filing jointly. 
A) single. 
B) surviving spouse. 
C) head of household. 
D) married filing jointly.

Question 4

One requirement for claiming a dependent as a qualifying relative is that the taxpayer provides more than 50 percent of the dependent's support (assuming it is not a multiple support agreement situation).

Accepted Answer

A) True 
 B)False

Question 5

A widow or widower may file a joint tax return and claim an exemption for the deceased spouse in the year of the spouse's death as long as the surviving spouse does not remarry before the end of the year.

Accepted Answer

A) True 
 B)False

Question 6

Silver Inc.is an S corporation.This year it earned $50,000 of taxable income and paid a $10,000 distribution to Daisy,its sole shareholder.Daisy has a marginal tax rate of 25%.Due to the corporation's results and the distribution paid,the IRS will receive total taxes of

Accepted Answer

A) $9,000. 
B) $12,500. 
C) $14,000. 
D) $10,000. 
A) $9,000. 
B) $12,500. 
C) $14,000. 
D) $10,000.

Question 7

Nate and Nikki have three dependent children ages 12,15,and 17.Their modified AGI is $120,000.What is the amount of the child credit to which they are entitled?

Accepted Answer

A) $0 
B) $500 
C) $1,500 
D) $2,000 
A) $0 
B) $500 
C) $1,500 
D) $2,000

Question 8

Elise,age 20,is a full-time college student with earned income from wages of $4,400 and interest income of $500.Elise's parents provide more than half of her support.Elise's 2015 taxable income is

Accepted Answer

A) $0. 
B) $150. 
C) $500. 
D) $3,850. 
A) $0. 
B) $150. 
C) $500. 
D) $3,850.

Question 9

A married couple in the top tax bracket has a new baby.Due to the birth of the baby their taxable income will be reduced in 2015 by $4,000.

Accepted Answer

A) True 
 B)False

Question 10

David's father is retired and receives $14,000 per year in social security benefits.David's father saves $4,000 of the benefits and spends the remaining $10,000 for his support.How much support must David provide for his father to meet the dependent support requirement?

Accepted Answer

A) $10,000 
B) $10,001 
C) $14,000 
D) $14,001 
A) $10,000 
B) $10,001 
C) $14,000 
D) $14,001

Question 11

When two or more people qualify to claim the same person as a dependent,a taxpayer who is entitled to the exemption through the qualified child rules has priority over a taxpayer who meets the requirements for other relatives.

Accepted Answer

A) True 
 B)False

Question 12

Adam attended college for much of 2015,during which time he was supported by his parents.Erin married Adam in December 2015.They live in a common law state.Adam graduated and will commence work in January 2016.Erin worked during 2015 and earned $20,000.Adam's only income was interest of $1,100.Adam's parents are in the 28% tax bracket.Thus,claiming Adam as a dependent would save them $1,120 ($4,000 × .28).
a.What is Erin and Adam's tax liability if they file a joint return?
b.What is Erin and Adam's total tax liability if they file separate returns and Adam's parents claim him as a dependent?

Accepted Answer

a. @#IMG-DLM& @#IMG-DLM& b.Erin's tax liability: @#IMG-DLM&

Question 13

The standard deduction is the maximum amount of itemized deductions which may be claimed by a taxpayer,and is based on an individual's filing status,age,and vision.

Accepted Answer

A) True 
 B)False

Question 14

A taxpayer is able to change his filing status from married filing jointly to married filing separately by filing amended return.

Accepted Answer

A) True 
 B)False

Question 15

Discuss why Congress passed the innocent spouse provision and detail the requirements to be met in order to qualify as an innocent spouse and be relieved of liability for tax on unreported income.

Accepted Answer

The provision was passed because each sp

Question 16

In 2015 Carol and Robert have salaries of $35,000 and $27,000,respectively.Their itemized deductions total $8,000.They are married,under 65,and live in a common law state.
a.Compute their taxable income assuming that they file a joint return.
b.Compute their taxable income assuming that they file separate returns and that Robert claims all of the itemized deductions.

Accepted Answer

The answer of In 2015 Carol and Robert have salaries...

Question 17

In order to qualify to file as surviving spouse,all of the following criteria must be met by the widow or widower except

Accepted Answer

A) he or she and the decedent must have shared the same household as of date of death. 
B) he or she must be a U.S.citizen or resident. 
C) he or she be qualified to file a joint return in the year of death. 
D) he or she must have at least one dependent child living at home the entire year and pay over half of the expenses of the home. 
A) he or she and the decedent must have shared the same household as of date of death. 
B) he or she must be a U.S.citizen or resident. 
C) he or she be qualified to file a joint return in the year of death. 
D) he or she must have at least one dependent child living at home the entire year and pay over half of the expenses of the home.

Question 18

A $10,000 gain earned on stock held 13 months is taxed in a more favorable manner than a $10,000 gain earned on stock held 11 months.

Accepted Answer

A) True 
 B)False

Question 19

All of the following items are deductions for adjusted gross income except

Accepted Answer

A) alimony paid. 
B) trade or business expenses. 
C) rent and royalty expenses. 
D) state and local income taxes. 
A) alimony paid. 
B) trade or business expenses. 
C) rent and royalty expenses. 
D) state and local income taxes.

Question 20

A married taxpayer may file as head of household under the abandoned spouse provisions if all of the following are met except

Accepted Answer

A) the taxpayer lived apart from his or her spouse for the last six months of the year. 
B) the taxpayer is a U.S.citizen or resident. 
C) the taxpayer pays over half of the cost of maintaining a household in which the taxpayer and a dependent son or daughter live for over half of the year. 
D) the taxpayer must have been married for at least two years. 
A) the taxpayer lived apart from his or her spouse for the last six months of the year. 
B) the taxpayer is a U.S.citizen or resident. 
C) the taxpayer pays over half of the cost of maintaining a household in which the taxpayer and a dependent son or daughter live for over half of the year. 
D) the taxpayer must have been married for at least two years.

Exam 4: Determination of Tax

A legally married same-sex couple can file a joint return.

Generally,deductions for (not from)adjusted gross income are personal expenses specifically allowed by tax law.

Edward,a widower whose wife died in 2012,maintains a household for himself and his daughter who qualifies as his dependent.Edward's most favorable filing status for 2015 is

One requirement for claiming a dependent as a qualifying relative is that the taxpayer provides more than 50 percent of the dependent's support (assuming it is not a multiple support agreement situation).

A widow or widower may file a joint tax return and claim an exemption for the deceased spouse in the year of the spouse's death as long as the surviving spouse does not remarry before the end of the year.

Silver Inc.is an S corporation.This year it earned $50,000 of taxable income and paid a $10,000 distribution to Daisy,its sole shareholder.Daisy has a marginal tax rate of 25%.Due to the corporation's results and the distribution paid,the IRS will receive total taxes of

Nate and Nikki have three dependent children ages 12,15,and 17.Their modified AGI is $120,000.What is the amount of the child credit to which they are entitled?

Elise,age 20,is a full-time college student with earned income from wages of $4,400 and interest income of $500.Elise's parents provide more than half of her support.Elise's 2015 taxable income is

A married couple in the top tax bracket has a new baby.Due to the birth of the baby their taxable income will be reduced in 2015 by $4,000.

David's father is retired and receives $14,000 per year in social security benefits.David's father saves $4,000 of the benefits and spends the remaining $10,000 for his support.How much support must David provide for his father to meet the dependent support requirement?

When two or more people qualify to claim the same person as a dependent,a taxpayer who is entitled to the exemption through the qualified child rules has priority over a taxpayer who meets the requirements for other relatives.

The standard deduction is the maximum amount of itemized deductions which may be claimed by a taxpayer,and is based on an individual's filing status,age,and vision.

A taxpayer is able to change his filing status from married filing jointly to married filing separately by filing amended return.

Discuss why Congress passed the innocent spouse provision and detail the requirements to be met in order to qualify as an innocent spouse and be relieved of liability for tax on unreported income.

In order to qualify to file as surviving spouse,all of the following criteria must be met by the widow or widower except

A $10,000 gain earned on stock held 13 months is taxed in a more favorable manner than a $10,000 gain earned on stock held 11 months.

All of the following items are deductions for adjusted gross income except

A married taxpayer may file as head of household under the abandoned spouse provisions if all of the following are met except

Tax Research

an Introduction to Taxation

Corporate Formations and Capital Structure

The Corporate Income Tax

Gross Income: Inclusions

Corporate Nonliquidating Distributions

Gross Income: Exclusions

Other Corporate Tax Levies

Property Transactions: Capital Gains and Losses

Corporate Liquidating Distributions

Deductions and Losses

Corporate Acquisitions and Reorganizations

Itemized Deductions

Consolidated Tax Returns

Losses and Bad Debts

Partnership Formation and Operation

Employee Expenses and Deferred Compensation

Special Partnership Issues

Depreciation,cost Recovery,amortization,and Depletion

Corporations

Accounting Periods and Methods

The Gift Tax

Property Transactions: Nontaxable Exchanges

The Estate Tax

Property Transactions: Section 1231 and Recapture

Income Taxation of Trusts and Estates

Special Tax Computation Methods,tax Credits,and Payment of Tax

Administrative Procedures

Filters