Perry, a single taxpayer, has taxable income of $178,000 and is in the 32% tax bracket.During 2019, he had the following capital asset transactions: $\begin{array}{lr} \text { Gain from the sale of a stamp collection (held for } 10 \text { years) } & \$ 30,000 \\ \text { Gain from the sale of an investment in land (held for } 4 \text { years) } & 10,000 \\ \text { Gain from the sale of stock investment (held for } 8 \text { months) } & 4,000 \end{array}$ Perry's tax consequences from these gains are as follows:

A) (15% × $30,000) + (32% × $4,000). B) (15% × $10,000) + (28% × $30,000) + (32% × $4,000). C) (0% × $10,000) + (28% × $30,000) + (32% × $4,000). D) (15% × $40,000) + (32% × $4,000). E) None of these. A) (15% × $30,000) + (32% × $4,000). B) (15% × $10,000) + (28% × $30,000) + (32% × $4,000). C) (0% × $10,000) + (28% × $30,000) + (32% × $4,000). D) (15% × $40,000) + (32% × $4,000). E) None of these.

During 2019, Marvin had the following transactions: \[\begin{array} { l r } \text { Salary } & \$ 50,000 \\ \text { Bank loan (proceeds used to buy personal auto) } & 10,000 \\ \text { Alimony paid (divorce was finalized in 2010). } & 12,000 \\ \text { Child support paid } & 6,000 \\ \text { Gift from aunt } & 20,000 \end{array}\] Marvin's AGI is:

A) $32,000. B) $38,000. C) $44,000. D) $56,000. E) $64,000. A) $32,000. B) $38,000. C) $44,000. D) $56,000. E) $64,000.

Exam 3: Tax Formula and Tax Determination an Overview of Property Transactions

During 2019, Lisa (age 66) furnished more than 50% of the support of the following persons: ? Her current husband who has no income and is not claimed by anyone else as a dependent. ? Her stepson (age 19) who lives with her and earns $6,000 as a dance instructor.He dropped out of school a year ago. ? Her ex-husband who does not live with her.The divorce occurred two years ago. ? Her former brother-in-law who does not live with her. Presuming that all other dependency tests are met, on a separate return how many dependents may Lisa claim?

(Multiple Choice)

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Question 41

Jason and Peg are married and file a joint return.Both are over 65 years of age and Jason is blind.Their standard deduction for 2019 is $28,300 ($24,400 + $1,300 + $1,300 + $1,300).

(True/False)

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Question 42

The filing status of a taxpayer (e.g., single, head of household) must be identified before the applicable standard deduction is determined.

(True/False)

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Question 43

A child who is married cannot be subject to the kiddie tax.

(True/False)

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Question 44

Perry, a single taxpayer, has taxable income of $178,000 and is in the 32% tax bracket.During 2019, he had the following capital asset transactions: Gain from the sale of a stamp collection (held for 10 years) \ 30,000 Gain from the sale of an investment in land (held for 4 years) 10,000 Gain from the sale of stock investment (held for 8 months) 4,000 Perry's tax consequences from these gains are as follows:

(Multiple Choice)

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Question 45

In January 2019, Jake's wife dies and he does not remarry.For tax year 2019, Jake may not be able to use the filing status available to married persons filing joint returns.

(True/False)

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Question 46

An individual taxpayer uses a fiscal year of March 1 to February 28.The due date of this taxpayer's Federal income tax return is May 15 of each tax year.

(True/False)

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Question 47

The kiddie tax does not apply to a child whose earned income is more than one-half of his or her support.

(True/False)

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Question 48

Match the statements that relate to each other.Note: Some choices may be used more than once. -Kiddie tax applies

(Multiple Choice)

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Question 49

Many taxpayers who previously itemized will start claiming the standard deduction when they purchase a home.

(True/False)

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Question 50

Match the statements that relate to each other.Note: Some choices may be used more than once. -Scholarship funds for room and board

(Multiple Choice)

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Question 51

Matching Regarding classification as a dependent, classify each statement in one of the four categories: -A nephew who lives with taxpayer.

(Multiple Choice)

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Question 52

Match the statements that relate to each other.Note: Choice k.may be used more than once. -Relationship test (for dependency exemption purposes)

(Multiple Choice)

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Question 53

In determining whether the gross income test is met for determining dependency status, only the taxable portion of a scholarship is considered.

(True/False)

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Question 54

In terms of the tax formula applicable to individual taxpayers, which of the following statements, if any, is correct?

(Multiple Choice)

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Question 55

During 2019, Marvin had the following transactions: Salary \ 50,000 Bank loan (proceeds used to buy personal auto) 10,000 Alimony paid (divorce was finalized in 2010). 12,000 Child support paid 6,000 Gift from aunt 20,000 Marvin's AGI is:

(Multiple Choice)

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Question 56

Which of the statements regarding the standard deduction, if any, is correct?

(Multiple Choice)

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Question 57

In 2019, Hal furnishes more than half of the support of his ex-wife and her father, both of whom live with him.The divorce occurred in 2018.Hal may claim the father-in-law and the ex-wife as dependents.

(True/False)

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Question 58

An above-the-line deduction refers to a deduction for AGI.

(True/False)

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Question 59

Katelyn is divorced and maintains a household in which she and her daughter, Crissa, live.Crissa, age 22, earns $11,000 during 2019 as a model.Katelyn does not qualify for head of household filing status.

(True/False)

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Question 60

Showing 41 - 60 of 138

Jason and Peg are married and file a joint return.Both are over 65 years of age and Jason is blind.Their standard deduction for 2019 is $28,300 ($24,400 + $1,300 + $1,300 + $1,300).

The filing status of a taxpayer (e.g., single, head of household) must be identified before the applicable standard deduction is determined.

A child who is married cannot be subject to the kiddie tax.

In January 2019, Jake's wife dies and he does not remarry.For tax year 2019, Jake may not be able to use the filing status available to married persons filing joint returns.

An individual taxpayer uses a fiscal year of March 1 to February 28.The due date of this taxpayer's Federal income tax return is May 15 of each tax year.

The kiddie tax does not apply to a child whose earned income is more than one-half of his or her support.

Match the statements that relate to each other.Note: Some choices may be used more than once. -Kiddie tax applies

Many taxpayers who previously itemized will start claiming the standard deduction when they purchase a home.

Match the statements that relate to each other.Note: Some choices may be used more than once. -Scholarship funds for room and board

Matching Regarding classification as a dependent, classify each statement in one of the four categories: -A nephew who lives with taxpayer.

Match the statements that relate to each other.Note: Choice k.may be used more than once. -Relationship test (for dependency exemption purposes)

In determining whether the gross income test is met for determining dependency status, only the taxable portion of a scholarship is considered.

In terms of the tax formula applicable to individual taxpayers, which of the following statements, if any, is correct?

During 2019, Marvin had the following transactions: Salary \ 50,000 Bank loan (proceeds used to buy personal auto) 10,000 Alimony paid (divorce was finalized in 2010). 12,000 Child support paid 6,000 Gift from aunt 20,000 Marvin's AGI is:

Which of the statements regarding the standard deduction, if any, is correct?

In 2019, Hal furnishes more than half of the support of his ex-wife and her father, both of whom live with him.The divorce occurred in 2018.Hal may claim the father-in-law and the ex-wife as dependents.

An above-the-line deduction refers to a deduction for AGI.

Katelyn is divorced and maintains a household in which she and her daughter, Crissa, live.Crissa, age 22, earns $11,000 during 2019 as a model.Katelyn does not qualify for head of household filing status.

An Introduction to Taxation and Understanding the Federal Tax Law

Working With the Tax Law

Gross Income: Concepts and Inclusions

Gross Income: Exclusions

Deductions and Losses: in General

Deductions and Losses: Certain Business Expenses and Losses

Depreciation, Cost Recovery, Amortization, and Depletion

Deductions: Employee and Self-Employed-Related Expenses

Deductions and Losses: Certain Itemized Deductions

Investor Losses

Alternative Minimum Tax

Tax Credits and Payment Procedures

Property Transactions: Determination of Gain or Loss and Basic Considerations

Property Transactions: Nontaxable Exchanges

Property Transactions: Capital Gains and Losses

Property Transactions: Section 1231 and Recapture Provisions

Accounting Periods and Methods

Deferred Compensation

Corporations and Partnerships

Filters