Question 1

Deductions are allowed unless a specific provision in the tax law provides otherwise.

Accepted Answer

A) True 
 B)False

Question 2

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 the above. 
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 the above.

Question 3

LD Partnership,a cash basis taxpayer,purchases land and a building for $200,000 with $150,000 of the cost being allocated to the building.The gross receipts of the partnership are less than $100,000.LD must capitalize the $50,000 paid for the land,but can deduct the $150,000 paid for the building in the current tax year.

Accepted Answer

A) True 
 B)False

Question 4

Fines and penalties paid for violations of the law (e.g.,illegal dumping of hazardous waste) are deductible only if they relate to a trade or business.

Accepted Answer

A) True 
 B)False

Question 5

For a vacation home to be classified in the personal/rental use category,what attributes must be present?

Accepted Answer

To be classified in the personal/rental

Question 6

The stock of Eagle,Inc.is owned as follows:
Tom sells land and a building to Eagle,Inc.for $212,000.His adjusted basis for these assets is $225,000.Calculate Tom's realized and recognized loss associated with the sale.

Accepted Answer

Tom's realized loss is $13,000.
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 @#IMG-DLM& Ho

Deductions are allowed unless a specific provision in the tax law provides otherwise.

Which of the following is a deduction for AGI?

Fines and penalties paid for violations of the law (e.g.,illegal dumping of hazardous waste) are deductible only if they relate to a trade or business.

For a vacation home to be classified in the personal/rental use category,what attributes must be present?

The stock of Eagle,Inc.is owned as follows: Tom sells land and a building to Eagle,Inc.for $212,000.His adjusted basis for these assets is $225,000.Calculate Tom's realized and recognized loss associated with the sale.

An Introduction to Taxation and Understanding 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, sec1231, and Recapture Provisions

Alternative Minimum Tax

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 Reorganization

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

Deductions are allowed unless a specific provision in the tax law provides otherwise.

Which of the following is a deduction for AGI?

Fines and penalties paid for violations of the law (e.g.,illegal dumping of hazardous waste) are deductible only if they relate to a trade or business.

For a vacation home to be classified in the personal/rental use category,what attributes must be present?

The stock of Eagle,Inc.is owned as follows: Tom sells land and a building to Eagle,Inc.for $212,000.His adjusted basis for these assets is $225,000.Calculate Tom's realized and recognized loss associated with the sale.

An Introduction to Taxation and Understanding 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, sec1231, and Recapture Provisions

Alternative Minimum Tax

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 Reorganization

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