Question 1

Cory incurred and paid the following expenses:   Calculate the amount that Cory can deduct (before any percentage limitations).

Accepted Answer

A) $5,000. 
B) $4,600. 
C) $3,000. 
D) $1,500. 
E) None of the above. 
A) $5,000. 
B) $4,600. 
C) $3,000. 
D) $1,500. 
E) None of the above.

Question 2

None of the prepaid rent paid on October 1 by a calendar year cash basis taxpayer for the next 18 months is deductible in the current period.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not relevant in deciding whether an activity is profit-seeking or a hobby?

Accepted Answer

A) The time and effort expended. 
B) The expertise of the taxpayers or their advisers. 
C) The history of income or losses from the activity. 
D) The tax benefits of the activity to the taxpayer. 
E) All of the above factors are to be considered. 
A) The time and effort expended. 
B) The expertise of the taxpayers or their advisers. 
C) The history of income or losses from the activity. 
D) The tax benefits of the activity to the taxpayer. 
E) All of the above factors are to be considered.

Question 4

Which of the following is not a "trade or business" expense?

Accepted Answer

A) Interest on business indebtedness. 
B) Property taxes on business property. 
C) Parking ticket paid on business auto. 
D) Depreciation on business property. 
E) All of the above are "trade or business" expenses. 
A) Interest on business indebtedness. 
B) Property taxes on business property. 
C) Parking ticket paid on business auto. 
D) Depreciation on business property. 
E) All of the above are "trade or business" expenses.

Cory incurred and paid the following expenses: Calculate the amount that Cory can deduct (before any percentage limitations).

None of the prepaid rent paid on October 1 by a calendar year cash basis taxpayer for the next 18 months is deductible in the current period.

Which of the following is not relevant in deciding whether an activity is profit-seeking or a hobby?

Which of the following is not a "trade or business" expense?

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

Part 1--Property Transactions: Determination of Gain or Loss,basis Considerations,and Nontaxable Exchanges

Part 2--Property Transactions: Determination of Gain or Loss,basis Considerations,and Nontaxable Exchanges

Property Transactions: Capital Gains and Losses,1231,and Recapure Provisions

Alternative Minimum Tax

Accounting Periods and Methods

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Distributions Not in Complete Liquidation

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

Cory incurred and paid the following expenses: Calculate the amount that Cory can deduct (before any percentage limitations).

None of the prepaid rent paid on October 1 by a calendar year cash basis taxpayer for the next 18 months is deductible in the current period.

Which of the following is not relevant in deciding whether an activity is profit-seeking or a hobby?

Which of the following is not a "trade or business" expense?

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

Part 1--Property Transactions: Determination of Gain or Loss,basis Considerations,and Nontaxable Exchanges

Part 2--Property Transactions: Determination of Gain or Loss,basis Considerations,and Nontaxable Exchanges

Property Transactions: Capital Gains and Losses,1231,and Recapure Provisions

Alternative Minimum Tax

Accounting Periods and Methods

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Distributions Not in Complete Liquidation

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