The Jacksons, who file a joint return, actively participate in a solely-owned rental real estate activity that produces a USD30,000 loss during the current year. Their adjusted gross income was USD120,000 before considering the rental activity. How much of the rental loss, if any, are the Jacksons entitled to deduct?

1 .During the year Kay received interest income as follows: On U.S. Treasury certificates USD4,000 On refund of prior year's federal income tax 500 The total amount of interest subject to tax in Kay's current year tax return is:

A USD4,000 B USD4,500 C USD500 D USD0

题型: 单选题 提问时间: 2021-08-24

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2 .Ben Flood, attorney at law, is a sole proprietor and files Schedule C with his federal Form 1040. Which of the following is not a deductible expense on Schedule C?

A Health insurance for him and his family. B USD30 business tax payable to the city in which he practices. C Depreciation on the computer used by his assistant. D Salaries paid to the paralegal who works for him.

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3 .Baker, a sole proprietor CPA, has several clients that do business in Spain. While on a four-week vacation in Spain, Baker took a five-day seminar on Spanish business practices that cost USD700. Baker's round-trip airfare to Spain was USD600. While in Spain, Baker spent an average of USD100 per day on accommodations, local travel, and other incidental expenses, for total expenses of USD2,800. What amount of total expense can Baker deduct on Form 1040 Schedule C, "Profit or Loss From Business," related to this situation?

A USD 4,100 B USD 1,200 C USD 700 D USD 1,800

题型: 单选题 提问时间: 2021-08-24

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4 .Which of the following types of costs are required to be capitalized under the Uniform Capitalization Rules of Code Sec. 263A?

A Marketing. B Office maintenance. C Warehousing. D Distribution.

题型: 单选题 提问时间: 2021-08-24

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5 .Baum, an unmarried optometrist and sole proprietor of Optics, buys and maintains a supply of eyeglasses and frames to sell in the ordinary course of business. In the current year, Optics had USD350,000 in gross business receipts and its year-end inventory was not subject to the uniform capitalization rules. Baum's current year adjusted gross income was USD90,000 and Baum qualified to itemize deductions. During the year, Baum recorded the following information:Businessexpenses:Optics cost of goods soldUSD35,000Optics rent expense28,000Liability insurance premium on Optics5,250Otherexpenditures:Baum's self-employment taxUSD29,750Baum's self-employment health insurance8,750Insurance premium on personal residence. In the current year, Baum's home wastotally destroyed by fire. The furniture had an adjusted basis of USD14,000 and afair market value of USD11,000. During the year, Baum collected USD3,000 in insurancereimbursement and had no casualty gains during the year.2,625Qualified mortgage interest on a loan to acquire a personal residence52,500Annual interest on a USD70,000, 5-year home equity loan. The loan was securedby Baum's home, obtained January 2 of the current year. The fair market valueof the home exceeded the mortgage and the home equity loan by a substantialamount. The proceeds were used to purchase a car for personal use.3,500Points prepaid on January 2 of the current year to acquire the home equity loan1,400Real estate taxes on personal residence2,200Estimated payments of current year federal income taxes13,500Local property taxes on the car value, used exclusively for personal use300What amount should Baum report as current year net earnings from self-employment?

A USD 252,000 B USD 281,750 C USD 273,000 D USD 243,250

题型: 单选题 提问时间: 2021-08-24

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7 .With regard to the inclusion of social security benefits in gross income, for the Year 8 tax year, which of the following statements is correct?

A The social security benefits in excess of the modified adjusted gross income over a threshold amount are included in gross income. B The social security benefits in excess of modified adjusted gross income are included in gross income. C The social security benefits in excess of one half the modif...

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8 .Which payment(s) is (are) included in a recipient's gross income?I.Payment to a graduate assistant for a part-time teaching assignment at a university. Teaching is not a requirement toward obtaining the degree.II.A grant to a Ph. candidate for his participation in a university-sponsored research project for the benefit of the university.

A Neither I nor II. B Both I and II. C II only. D I only.

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9 .Lind and Post organized Ace Corp., which issued voting common stock with a fair market value of USD120,000. They each transferred property in exchange for stock as follows:PropertyAdjustedbasisFairmarketvaluePercentageof Ace stockacquiredLindBuildingUSD40,000USD82,00060%PostLandUSD5,000USD48,00040%The building was subject to a USD10,000 mortgage that was assumed by Ace. What was Ace's basis in the building?

A USD40,000 B USD72,000 C USD30,000 D USD82,000

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10 .Which of the following cannot be amortized for tax purposes?

A Incorporation costs. B Organizational meeting costs. C Stock issuance costs. D Temporary directors' fees.

题型: 单选题 提问时间: 2021-08-24

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