Exam 8: Rental Property, royalties, and Income From Flow-Through Entities Line 17, form 1040, and Schedule E

Ariel,Bob,Candice and Dmitri are equal partners in a local ski resort.The resort reports the following items for the current year: Business revenue $ 1,200,000 Business expenses 750,000 Short-term capital gains 107,000 Short-term capital losses 103,000 ) Each partner receives a Schedule K-1 with one-fourth of the preceding items reported to him/her.How must each individual report these results on his/her Form 1040?

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(Multiple Choice)

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Question 1

Correct Answer:

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On June 1 of the current year,Jack and Angie purchased a rental beach house for $900,000 and rented it right away.Of that amount,$600,000 was for the land value.How much depreciation deduction can Jack and Angie take in the current year? You may need to refer to the depreciation tables.)

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Question 2

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Jonathan and Sandy rented their cabin for 123 days and used the cabin for personal use for 55 days.The cabin is considered personal/rental property.

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(True/False)

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Question 3

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Generally,a taxpayer uses Schedule C to report royalty income.

(True/False)

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Question 4

From which of the following flow-through entities is the ordinary income K-1)considered self-employment income?

(Multiple Choice)

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Question 5

Explain the difference between the two methods available; the Tax Court's method and the IRS method,to allocate expenses between personal and rental use of property.

(Essay)

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Question 6

When royalties are paid,the amount paid is reported to the recipient by the payer on a Form 1099-MISC.

(True/False)

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Question 7

Georgia owns a home in Colorado that she rents for $1,200 per month she does not use the home personally).While she was in Europe in November,the roof in her rental home leaked and her tenant repaired it for $900.For the following month's rent December),her tenant paid her $300 for rent $1,200 - $900).What amounts should Georgia include for rental income and repair expense,respectively,for December?

(Multiple Choice)

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Question 8

Flow-through entities include,but are not limited to,LLCs,S Corporations,trusts and estates.

(True/False)

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Question 9

Kirk and Amy live in Augusta,Georgia.Every year during the Masters Golf Tournament,they rent their primary personal residence for 10 days for $10,000 to a large corporation that uses it to entertain clients.The rest of year,they reside full-time in their home.How should Kirk and Amy treat the rental income? Explain.

(Essay)

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Question 10

When royalty income is received,the recipient tax payer)generally reports the income on which form?

(Multiple Choice)

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Question 11

All advance rental payments received,including security deposits for a rental property,must be reported as income when received.

(True/False)

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Question 12

Samantha is a full-time author and recently published her 8^thromance novel.She should report the royalty income she receives from the publisher this year on what Schedule/Form?

(Multiple Choice)

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Question 13

Meredith has a vacation rental house in the Sierra Mountains.During the year,she and her immediate family used the house for 12 days for a personal vacation.Meredith spent two more weekends 4 days in total)repairing the deck.Meredith also rented her house at fair value)to her brother and his family for 9 days in addition to her personal use).The house was rented for 180 days.How should the cabin be categorized this year for tax purposes? Explain your answer.

(Essay)

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Question 14

Which of the following entityies)isare)considered flow-through?

(Multiple Choice)

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Question 15

On June 1^stof the current year,Nancy and Dean purchased a rental beach house for $1,200,000.Of that amount,$800,000 was for the land value.How much depreciation deduction can Nancy and Dean take in the current year? You may need to refer to the depreciation tables.)

(Multiple Choice)

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Question 16

A taxpayer may use a Schedule C or a Schedule E to report royalty income.

(True/False)

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Question 17

Alexis's cabin in the mountains that was rented for 125 days and used by her for 12 days is considered personal/rental property.

(True/False)

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Question 18

Earl and Sandra own and operate a restaurant as an S corporation.Each is a 50% owner.The business reports the following results for the year: Revenue $ 480,000 Business expenses 398,000 Investment expenses 32,000 How do Earl and Sandra report these items for tax purposes on each of their individual returns?

(Multiple Choice)

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Question 19

Jackson owns a condominium in Las Vegas,Nevada,and he rents it to Joanne for $1,500 per month,payable on the 1^stof each month.While he was out of town in August,the condominium's air conditioning broke and Joanne had it replaced for $1,350.How much rental income does Jackson report for September if Joanne deducts the repair cost from her rent for September?

(Multiple Choice)

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Question 20

Showing 1 - 20 of 119

On June 1 of the current year,Jack and Angie purchased a rental beach house for $900,000 and rented it right away.Of that amount,$600,000 was for the land value.How much depreciation deduction can Jack and Angie take in the current year? You may need to refer to the depreciation tables.)

Jonathan and Sandy rented their cabin for 123 days and used the cabin for personal use for 55 days.The cabin is considered personal/rental property.

Generally,a taxpayer uses Schedule C to report royalty income.

From which of the following flow-through entities is the ordinary income K-1)considered self-employment income?

Explain the difference between the two methods available; the Tax Court's method and the IRS method,to allocate expenses between personal and rental use of property.

When royalties are paid,the amount paid is reported to the recipient by the payer on a Form 1099-MISC.

Flow-through entities include,but are not limited to,LLCs,S Corporations,trusts and estates.

When royalty income is received,the recipient tax payer)generally reports the income on which form?

All advance rental payments received,including security deposits for a rental property,must be reported as income when received.

Samantha is a full-time author and recently published her 8^thromance novel.She should report the royalty income she receives from the publisher this year on what Schedule/Form?

Which of the following entityies)isare)considered flow-through?

On June 1^stof the current year,Nancy and Dean purchased a rental beach house for $1,200,000.Of that amount,$800,000 was for the land value.How much depreciation deduction can Nancy and Dean take in the current year? You may need to refer to the depreciation tables.)

A taxpayer may use a Schedule C or a Schedule E to report royalty income.

Alexis's cabin in the mountains that was rented for 125 days and used by her for 12 days is considered personal/rental property.

Introduction to Taxation, the Income Tax Formula, and Form 1040ez

Expanded Tax Formula, forms 1040a and 1040, and Basic Concepts

Gross Income: Inclusions and Exclusions

Adjustments for Adjusted Gross Income

Itemized Deductions

Self-Employed Business Income Line 12 of Form 1040 and Schedule C

Capital Gains and Other Sales of Property Schedule D and Form 4797

Tax Credits Form 1040, lines 46 Through 54 and Lines 66a Through 73

Payroll Taxes

Retirement and Other Tax-Deferred Plans and Annuities

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Partnership Taxation

Corporate Taxation

Filters

Exam 8: Rental Property, royalties, and Income From Flow-Through Entities Line 17, form 1040, and Schedule E

On June 1 of the current year,Jack and Angie purchased a rental beach house for $900,000 and rented it right away.Of that amount,$600,000 was for the land value.How much depreciation deduction can Jack and Angie take in the current year? You may need to refer to the depreciation tables.)

Jonathan and Sandy rented their cabin for 123 days and used the cabin for personal use for 55 days.The cabin is considered personal/rental property.

Generally,a taxpayer uses Schedule C to report royalty income.

From which of the following flow-through entities is the ordinary income K-1)considered self-employment income?

Explain the difference between the two methods available; the Tax Court's method and the IRS method,to allocate expenses between personal and rental use of property.

When royalties are paid,the amount paid is reported to the recipient by the payer on a Form 1099-MISC.

Flow-through entities include,but are not limited to,LLCs,S Corporations,trusts and estates.

When royalty income is received,the recipient tax payer)generally reports the income on which form?

All advance rental payments received,including security deposits for a rental property,must be reported as income when received.

Samantha is a full-time author and recently published her 8th romance novel.She should report the royalty income she receives from the publisher this year on what Schedule/Form?

Which of the following entityies)isare)considered flow-through?

On June 1st of the current year,Nancy and Dean purchased a rental beach house for $1,200,000.Of that amount,$800,000 was for the land value.How much depreciation deduction can Nancy and Dean take in the current year? You may need to refer to the depreciation tables.)

A taxpayer may use a Schedule C or a Schedule E to report royalty income.

Alexis's cabin in the mountains that was rented for 125 days and used by her for 12 days is considered personal/rental property.

Introduction to Taxation, the Income Tax Formula, and Form 1040ez

Expanded Tax Formula, forms 1040a and 1040, and Basic Concepts

Gross Income: Inclusions and Exclusions

Adjustments for Adjusted Gross Income

Itemized Deductions

Self-Employed Business Income Line 12 of Form 1040 and Schedule C

Capital Gains and Other Sales of Property Schedule D and Form 4797

Tax Credits Form 1040, lines 46 Through 54 and Lines 66a Through 73

Payroll Taxes

Retirement and Other Tax-Deferred Plans and Annuities

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Partnership Taxation

Corporate Taxation

Filters

Samantha is a full-time author and recently published her 8^thromance novel.She should report the royalty income she receives from the publisher this year on what Schedule/Form?

On June 1^stof the current year,Nancy and Dean purchased a rental beach house for $1,200,000.Of that amount,$800,000 was for the land value.How much depreciation deduction can Nancy and Dean take in the current year? You may need to refer to the depreciation tables.)