Question 1

Which of the following is a deduction for AGI?

Accepted Answer

A)  Contribution to a traditional IRA. 
B)  Roof repairs to a personal use home. 
C)  Safe deposit box rental fee in which stock certificates are stored. 
D)  Property tax on personal residence. 
E)  All of these. 
A)  Contribution to a traditional IRA. 
B)  Roof repairs to a personal use home. 
C)  Safe deposit box rental fee in which stock certificates are stored. 
D)  Property tax on personal residence. 
E)  All of these.

Question 2

Trade or business expenses of a self-employed taxpayer should be treated as:

Accepted Answer

A)  Deductible for AGI on Schedule E. 
B)  A deduction from AGI. 
C)  Deductible for AGI on Schedule C. 
D)  An itemized deduction if not reimbursed. 
E)  None of these. 
A)  Deductible for AGI on Schedule E. 
B)  A deduction from AGI. 
C)  Deductible for AGI on Schedule C. 
D)  An itemized deduction if not reimbursed. 
E)  None of these.

Question 3

Which of the following statements is correct in connection with the investigation of a business?

Accepted Answer

A)  If the taxpayer is not already engaged in the trade or business, the expenses incurred are deductible if the project is abandoned. 
B)  Expenses may be deducted immediately by a taxpayer engaged in a similar trade or business regardless of whether the business being investigated is acquired. 
C)  That business must be related to the taxpayer's present business for any expense ever to be deductible. 
D)  Regardless of whether the taxpayer is already engaged in the trade or business, the expenses must be capitalized and amortized. 
E)  None of these. 
A)  If the taxpayer is not already engaged in the trade or business, the expenses incurred are deductible if the project is abandoned. 
B)  Expenses may be deducted immediately by a taxpayer engaged in a similar trade or business regardless of whether the business being investigated is acquired. 
C)  That business must be related to the taxpayer's present business for any expense ever to be deductible. 
D)  Regardless of whether the taxpayer is already engaged in the trade or business, the expenses must be capitalized and amortized. 
E)  None of these.

Question 4

In applying the $1 million limit on deducting executive compensation, what corporations are subject to the deduction limit? What executives are covered?

Accepted Answer

The $1 million limit on deducting the co

Question 5

Discuss the application of the "one-year rule" on prepayments by a cash basis taxpayer.

Accepted Answer

The Regulations set forth the general ru

Question 6

For purposes of the § 267 loss disallowance provision, a taxpayer's aunt is a related party.

Accepted Answer

A) True 
 B)False

Question 7

Andrew, who operates a laundry business, incurred the following expenses during the year. ∙ Parking ticket of $250 for one of his delivery vans that parked illegally.
∙ Parking ticket of $75 when he parked illegally while attending a rock concert in Tulsa.
∙ DUI ticket of $500 while returning from the rock concert.
∙ Attorney's fee of $600 associated with the DUI ticket.
What amount can Andrew deduct for these expenses?

Accepted Answer

A)  $0. 
B)  $250. 
C)  $600. 
D)  $1,425. 
A)  $0. 
B)  $250. 
C)  $600. 
D)  $1,425.

Question 8

During the year, Jim rented his vacation home for 200 days and lived in it for 19 days. During the remaining days, the vacation home was available for rental use. Is the vacation home subject to the limitation on the deductions of a personal/rental vacation home?

Accepted Answer

The vacation home is not subject to the

Which of the following is a deduction for AGI?

Trade or business expenses of a self-employed taxpayer should be treated as:

Which of the following statements is correct in connection with the investigation of a business?

In applying the $1 million limit on deducting executive compensation, what corporations are subject to the deduction limit? What executives are covered?

Discuss the application of the "one-year rule" on prepayments by a cash basis taxpayer.

For purposes of the § 267 loss disallowance provision, a taxpayer's aunt is a related party.

During the year, Jim rented his vacation home for 200 days and lived in it for 19 days. During the remaining days, the vacation home was available for rental use. Is the vacation home subject to the limitation on the deductions of a personal/rental vacation home?

Understanding and Working With the Federal Tax Law

Working With the Tax Law

Computing the Tax

Gross Income: Concepts and Inclusions

Gross Income: Exclusions

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

Tax Credits and Payments

Property Transactions: Determination of Gain or Loss, Basis Considerations, and Nontaxable Exchanges

Property Transactions: Capital Gains and Losses, Section 1231, and Recapture Provisions

Taxing Business Income

Accounting Periods and Methods

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Distributions Not in Complete Liquidation

Corporations: Distributions in Complete Liquidation and an Overview of Reorganizations

Partnerships

S Corporations

Exempt Entities

Multistate Corporate Taxation

Taxation of International Transactions

Tax Practice and Ethics

The Federal Gift and Estate Taxes

Income Taxation of Trusts and Estates

Filters

Exam 6: Deductions and Losses: in General

Which of the following is a deduction for AGI?

Trade or business expenses of a self-employed taxpayer should be treated as:

Which of the following statements is correct in connection with the investigation of a business?

In applying the $1 million limit on deducting executive compensation, what corporations are subject to the deduction limit? What executives are covered?

Discuss the application of the "one-year rule" on prepayments by a cash basis taxpayer.

For purposes of the § 267 loss disallowance provision, a taxpayer's aunt is a related party.

During the year, Jim rented his vacation home for 200 days and lived in it for 19 days. During the remaining days, the vacation home was available for rental use. Is the vacation home subject to the limitation on the deductions of a personal/rental vacation home?

Understanding and Working With the Federal Tax Law

Working With the Tax Law

Computing the Tax

Gross Income: Concepts and Inclusions

Gross Income: Exclusions

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

Tax Credits and Payments

Property Transactions: Determination of Gain or Loss, Basis Considerations, and Nontaxable Exchanges

Property Transactions: Capital Gains and Losses, Section 1231, and Recapture Provisions

Taxing Business Income

Accounting Periods and Methods

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Distributions Not in Complete Liquidation

Corporations: Distributions in Complete Liquidation and an Overview of Reorganizations

Partnerships

S Corporations

Exempt Entities

Multistate Corporate Taxation

Taxation of International Transactions

Tax Practice and Ethics

The Federal Gift and Estate Taxes

Income Taxation of Trusts and Estates

Filters