1. Which of the following forms may be filed by individual taxpayers?
2. William is a divorced taxpayer who provides a home for his dependent child, Edward. What filing status should William indicate on his tax return?
3. Which one of the following provisions was passed by Congress to meet a social goal of the tax law?
4. An unmarried taxpayer who maintains a household for a dependent child and whose spouse died in the prior year should file as:
5. Ronald is 92 years old and in poor health. Clever investing earlier in his life has left him with a sizeable income. He is able to support his son Ed. Ed is 67 years old and a bit “confused,” so he lives in a home for the aged. Ed’s income is less than $2,000. How many exemptions should Ronald claim on his tax return?
6. Which of the following is a true statement with respect to the gross income test for the qualifying relative dependency exemption?
1. Partnerships:
8. Which of the following is correct?
9. Electronic filing (e-filing)
10. Form 1040 allows a taxpayer to report which of the following items that are not allowed for taxpayers who file form 1040A.
11. Partnership income is reported on:
12. Amended returns are filed on:
13. Taxpayers who are blind get the benefit of:
14. Electronically filed tax returns:
15. Depending on the amounts of income and other tax information, individuals may report their income on:
16. Which of the following amounts must be included in the gross income of the recipient?
17. Which of the following is generally excluded from gross income?
18. Which of the following is excluded from gross income?
19. Which of the following fringe benefits is taxable to the employee receiving the benefit?
20. Which of the following is nontaxable income to the recipient for tax purposes?
21. Which of the following is classified as nontaxable income?
22. Which of the following would result in life insurance proceeds that are taxable to the recipient?
23. Employer-provided spending accounts:
24. Indicate which of the following statements is true.
25. In the tax law, the definition of gross income is:
26. Under the Keogh plan provisions, deductible contributions to a qualified retirement plan on behalf of a self-employed individual whose net earned income is $20,000 are limited to:
27. Which of the following would be a business debt if it were uncollectible?
28. Which of the following statements is true of a distribution rollover (not a trustee-to-trustee transfer) from a retirement plan?
29. The net operating loss (NOL) provisions of the Internal Revenue Code
30. Norm is a real estate professional with a real estate trade or business as defined in the tax law. He has $150,000 of business income and $50,000 of losses from actively managed real estate rentals. How much of the $50,000 in losses is he allowed to claim on his tax return?
31. Which of the following is deductible as dues, subscriptions or publications?
32. If an employer chooses a per diem method of substantiation for travel expenses,
33. To file a Schedule C-EZ, the taxpayer must:
34. Which of the following taxpayers may not use the standard mileage method of calculating transportation costs?
35. Which of the following employees may deduct the cost of a uniform?
36. Taxpayers who make a combined business and pleasure trip:
37. Deductible transportation expenses:
38. What income tax form does a self-employed sole proprietor usually use to report income and expense from business?
39. What income tax form does an employee use to report expenses that are not reimbursed by an employer under an accountable plan?
40. Which of the following is deductible as a miscellaneous itemized deduction?
41. Which of the following miscellaneous deductions are subject to the 2% of adjusted gross income limitation?
42. What is the maximum amount of home equity debt (not acquisition debt) on which interest is fully deductible?
43. Which of the following factors are considered by the IRS in evaluating whether an activity is classified as a business or a hobby?
44. Which of the following is a miscellaneous itemized deduction?
45. Which of the following itemized deductions may not be deducted in computing the individual alternative minimum tax?
46. The earned income credit:
47. The child and dependent care provisions:
48. The American Opportunity credit
49. A tax credit is allowed for qualified adoption expenses paid by taxpayers
50. A parent may elect to include a child’s income in the parent’s return if:
51. Which of the following types of income is not subject to the “kiddie tax?”
52. Which of the following is not an acceptable method of accounting under the tax law?
53. What is the minimum number of years over which computers may be depreciated under MACRS?
54. Section 197 intangibles:
55. If a loss from sale or exchange of property between related parties is disallowed and the property is subsequently sold to an unrelated party,
56. Which of the following taxpayers is absolutely required to report on a calendar year-end basis?
57. Which of the following is a capital asset?
58. An asset has an original basis of $25,000 and depreciation has been claimed for the asset in the amount of $20,000. If the asset’s adjusted basis is $15,000, what is the amount of capital improvements that have been made to the asset?
59. An asset’s adjusted basis is computed as:
60. The adjusted basis of an asset may be determined by the