Question 1

For the qualifying relative category (for dependency exemption purposes):

Accepted Answer

A)  The dependent must be under age 19 or a full-time student under age 24. 
B)  The dependent need not reside with the taxpayer claiming the exemption. 
C)  The dependent must be related to the taxpayer claiming the exemption. 
D)  The dependent must be a citizen or resident of the U.S. 
E)  None of the above. 
A)  The dependent must be under age 19 or a full-time student under age 24. 
B)  The dependent need not reside with the taxpayer claiming the exemption. 
C)  The dependent must be related to the taxpayer claiming the exemption. 
D)  The dependent must be a citizen or resident of the U.S. 
E)  None of the above.

Question 2

All exclusions from gross income are reported on Form 1040.

Accepted Answer

A) True 
 B)False

Question 3

Match the statements that relate to each other.Note: Choice L may be used more than once.

Accepted Answer

The answer of Match the statements that relate to each...

Question 4

During 2012,Jen (age 66)furnished more than 50% of the support of the following persons:   Presuming all other dependency tests are met,on a separate return how many personal and dependency exemptions may Jen claim?

Accepted Answer

A)  Two. 
B)  Three. 
C)  Four. 
D)  Five. 
E)  None of the above. 
A)  Two. 
B)  Three. 
C)  Four. 
D)  Five. 
E)  None of the above.

Question 5

Merle is a widow,age 80 and blind,who is claimed as a dependent by her son.During 2012,she received $4,800 in Social Security benefits,$2,200 in bank interest,and $1,800 in cash dividends from stocks.Merle's taxable income is:

Accepted Answer

A)  $4,000 - $950 - $2,900 = $150. 
B)  $4,000 - $2,900 = $1,100. 
C)  $4,000 - $950 - $1,450 = $1,600. 
D)  $8,800 - $950 - $2,900 = $4,950. 
E)  None of the above. 
A)  $4,000 - $950 - $2,900 = $150. 
B)  $4,000 - $2,900 = $1,100. 
C)  $4,000 - $950 - $1,450 = $1,600. 
D)  $8,800 - $950 - $2,900 = $4,950. 
E)  None of the above.

Question 6

Lena is 66 years of age,single,and blind and is not claimed as a dependent.How much gross income must she have before she is required to file a Federal income tax return for 2012?

Accepted Answer

$11,200.$5,950 (basic standard

Question 7

When can a taxpayer not use Form 1040EZ? Form 1040A?

Accepted Answer

Form 1040EZ cannot be used when the taxp

Question 8

Regarding head of household filing status,comment on the following:

Accepted Answer

The answer of Regarding head of household filing status,comment on...

Question 9

For 2012,Jackson has taxable income of $30,005.When he uses the Tax Tables,Jackson finds that his tax liability is higher than under the Tax Rate Schedules.

Accepted Answer

The answer of For 2012,Jackson has taxable income of $30,005.When...

Question 10

Married taxpayers who file a joint return cannot later (i.e.,after the filing due date)switch to separate returns for that year.

Accepted Answer

A) True 
 B)False

Question 11

Gain on the sale of collectibles held for more than 12 months could be subject to tax at a rate lower than 28%.

Accepted Answer

A) True 
 B)False

Question 12

Contrast the tax consequences resulting from the following filing status situations:

Accepted Answer

The answer of Contrast the tax consequences resulting from the...

Question 13

Buddy and Hazel are ages 72 and 71 and file a joint return.If they have itemized deductions of $14,000 for 2012,they should not claim the standard deduction.

Accepted Answer

A) True 
 B)False

Question 14

Regarding the tax formula and its relationship to Form 1040,which,if any,of the following statements is correct?

Accepted Answer

A)  Most exclusions from gross income are reported on page 2 of Form 1040. 
B)  An "above the line deduction" refers to a deduction from AGI. 
C)  A "page 1 deduction" refers to a deduction for AGI. 
D)  The taxable income (TI) amount appears both at the bottom of page 1 and at the top of page 2 of Form 1040. 
E)  None of the above. 
A)  Most exclusions from gross income are reported on page 2 of Form 1040. 
B)  An "above the line deduction" refers to a deduction from AGI. 
C)  A "page 1 deduction" refers to a deduction for AGI. 
D)  The taxable income (TI) amount appears both at the bottom of page 1 and at the top of page 2 of Form 1040. 
E)  None of the above.

Question 15

Evan and Eileen Carter are husband and wife and file a joint return for 2012.Both are under 65 years of age.They provide more than half of the support of their daughter,Pamela (age 25),who is a full-time medical student.Pamela receives a $5,000 scholarship covering her tuition at college.They furnish all of the support of Belinda (Evan's grandmother),who is age 80 and lives in a nursing home.They also support Peggy (age 66),who is a friend of the family and lives with them.How many dependency exemptions may the Carters claim?

Accepted Answer

A)  Two. 
B)  Three. 
C)  Four. 
D)  Five. 
E)  None of the above. 
A)  Two. 
B)  Three. 
C)  Four. 
D)  Five. 
E)  None of the above.

Question 16

During the year,Kim sold the following assets: business auto for a $1,000 loss,stock investment for a $1,000 loss,and pleasure yacht for a $1,000 loss.Presuming adequate income,how much of these losses may Kim claim?

Accepted Answer

A)  $0. 
B)  $1,000. 
C)  $2,000. 
D)  $3,000. 
E)  None of the above. 
A)  $0. 
B)  $1,000. 
C)  $2,000. 
D)  $3,000. 
E)  None of the above.

Question 17

As opposed to itemizing deductions from AGI,the majority of individual taxpayers choose the standard deduction.

Accepted Answer

A) True 
 B)False

Question 18

List at least three exceptions to the application of the kiddie tax.

Accepted Answer

· Unearned income of $1,900 or less.
· A

Question 19

Under what circumstances,if any,may an ex-spouse be claimed as a dependent?

Accepted Answer

As an ex-spouse does not meet the relati

Question 20

A qualifying child cannot include:

Accepted Answer

A)  A nonresident alien. 
B)  A married son who files a joint return. 
C)  A daughter who is away at college. 
D)  A brother who is 28 years of age and disabled. 
E)  A grandmother. 
A)  A nonresident alien. 
B)  A married son who files a joint return. 
C)  A daughter who is away at college. 
D)  A brother who is 28 years of age and disabled. 
E)  A grandmother.

For the qualifying relative category (for dependency exemption purposes):

All exclusions from gross income are reported on Form 1040.

Match the statements that relate to each other.Note: Choice L may be used more than once.

During 2012,Jen (age 66)furnished more than 50% of the support of the following persons: Presuming all other dependency tests are met,on a separate return how many personal and dependency exemptions may Jen claim?

Merle is a widow,age 80 and blind,who is claimed as a dependent by her son.During 2012,she received $4,800 in Social Security benefits,$2,200 in bank interest,and $1,800 in cash dividends from stocks.Merle's taxable income is:

Lena is 66 years of age,single,and blind and is not claimed as a dependent.How much gross income must she have before she is required to file a Federal income tax return for 2012?

When can a taxpayer not use Form 1040EZ? Form 1040A?

Regarding head of household filing status,comment on the following:

For 2012,Jackson has taxable income of $30,005.When he uses the Tax Tables,Jackson finds that his tax liability is higher than under the Tax Rate Schedules.

Married taxpayers who file a joint return cannot later (i.e.,after the filing due date)switch to separate returns for that year.

Gain on the sale of collectibles held for more than 12 months could be subject to tax at a rate lower than 28%.

Contrast the tax consequences resulting from the following filing status situations:

Buddy and Hazel are ages 72 and 71 and file a joint return.If they have itemized deductions of $14,000 for 2012,they should not claim the standard deduction.

Regarding the tax formula and its relationship to Form 1040,which,if any,of the following statements is correct?

During the year,Kim sold the following assets: business auto for a $1,000 loss,stock investment for a $1,000 loss,and pleasure yacht for a $1,000 loss.Presuming adequate income,how much of these losses may Kim claim?

As opposed to itemizing deductions from AGI,the majority of individual taxpayers choose the standard deduction.

List at least three exceptions to the application of the kiddie tax.

Under what circumstances,if any,may an ex-spouse be claimed as a dependent?

A qualifying child cannot include:

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 Basis 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

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

For the qualifying relative category (for dependency exemption purposes):

All exclusions from gross income are reported on Form 1040.

Match the statements that relate to each other.Note: Choice L may be used more than once.

During 2012,Jen (age 66)furnished more than 50% of the support of the following persons: Presuming all other dependency tests are met,on a separate return how many personal and dependency exemptions may Jen claim?

Merle is a widow,age 80 and blind,who is claimed as a dependent by her son.During 2012,she received $4,800 in Social Security benefits,$2,200 in bank interest,and $1,800 in cash dividends from stocks.Merle's taxable income is:

Lena is 66 years of age,single,and blind and is not claimed as a dependent.How much gross income must she have before she is required to file a Federal income tax return for 2012?

When can a taxpayer not use Form 1040EZ? Form 1040A?

Regarding head of household filing status,comment on the following:

For 2012,Jackson has taxable income of $30,005.When he uses the Tax Tables,Jackson finds that his tax liability is higher than under the Tax Rate Schedules.

Married taxpayers who file a joint return cannot later (i.e.,after the filing due date)switch to separate returns for that year.

Gain on the sale of collectibles held for more than 12 months could be subject to tax at a rate lower than 28%.

Contrast the tax consequences resulting from the following filing status situations:

Buddy and Hazel are ages 72 and 71 and file a joint return.If they have itemized deductions of $14,000 for 2012,they should not claim the standard deduction.

Regarding the tax formula and its relationship to Form 1040,which,if any,of the following statements is correct?

During the year,Kim sold the following assets: business auto for a $1,000 loss,stock investment for a $1,000 loss,and pleasure yacht for a $1,000 loss.Presuming adequate income,how much of these losses may Kim claim?

As opposed to itemizing deductions from AGI,the majority of individual taxpayers choose the standard deduction.

List at least three exceptions to the application of the kiddie tax.

Under what circumstances,if any,may an ex-spouse be claimed as a dependent?

A qualifying child cannot include:

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 Basis 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