Advanced Taxation Review Questions
Course Introduction
Advanced Taxation delves into the complex principles and applications relevant to the taxation of individuals, corporations, and other entities. The course covers advanced topics such as tax planning strategies, international taxation, transfer pricing, tax implications of business reorganizations, estate and gift taxation, and contemporary tax compliance issues. Students will develop the analytical skills necessary to interpret evolving tax legislation and regulations, utilizing case studies and practical scenarios to address real-world tax problems. This course equips learners with the expertise required for advisory roles and to effectively manage sophisticated tax issues in professional practice.
Recommended Textbook
South Western Federal Taxation 2012 Comprehensive by William H. Hoffman
Available Study Resources on Quizplus
28 Chapters
3533 Verified Questions
3533 Flashcards
Source URL: https://quizplus.com/study-set/3601
Page 2
Chapter 1: An Introduction to Taxation and Understanding
the Federal Tax Law
Available Study Resources on Quizplus for this Chatper
155 Verified Questions
155 Flashcards
Source URL: https://quizplus.com/quiz/71504
Sample Questions
Q1) The value added tax (VAT)has had wide acceptance in the international community. A)True
B)False
Answer: True
Q2) Recently,more IRS audits are producing a greater number of no change results.This indicates increased compliance on the part of taxpayers.
A)True
B)False
Answer: False
Q3) Which,if any,of the following transactions will decrease a taxing jurisdiction's ad valorem tax revenue imposed on real estate?
A) A tax holiday is denied to an out-of-state business that is searching for a new factory site.
B) An abandoned church is converted to a restaurant.
C) A public school is razed and turned into a city park.
D) A local university buys an apartment building for use as a student dormitory.
E) None of the above.
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Working With the Tax Law
Available Study Resources on Quizplus for this Chatper
83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/71493
Sample Questions
Q1) Which of the following sources has the highest tax validity?
A) Revenue Ruling.
B) Letter ruling.
C) Regulations.
D) Internal Revenue Code section.
E) None of the above.
Answer: D
Q2) A U.S.Tax Court decision carries less weight than a decision issued by the Fifth Circuit Court of Appeals.
A)True
B)False
Answer: True
Q3) A taxpayer must pay any tax deficiency assessed by the IRS and sue for a refund to bring suit in the U.S.Court of Federal Claims.Only in the Tax Court can jurisdiction be obtained without first paying the assessed tax deficiency.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Tax Determination: Personal and Dependency
Exemptions: an Overview of Property Transactions
Available Study Resources on Quizplus for this Chatper
140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/71483
Sample Questions
Q1) A dependent cannot claim a personal exemption on his or her own return.
A)True
B)False
Answer: True
Q2) A child who is married cannot be subject to the kiddie tax.
A)True
B)False
Answer: False
Q3) Once a child reaches age 19,the kiddie tax no longer applies.
A)True
B)False
Answer: False
Q4) A child who has unearned income of $1,900 or less cannot be subject to the kiddie tax.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Gross Income: Concepts and Inclusions
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/71482
Sample Questions
Q1) The tax concept and economic concept of income are in agreement on which of the following:
A) The fair rental value of an owner-occupied home should be included in income.
B) The increase in value of assets held for the entire year should be included in income for the year.
C) The decrease in value of assets held for the entire year should reduce income for the year.
D) All of the above.
E) None of the above.
Q2) Ralph purchased his first Series EE bond during the year.He paid $709 for a 10-year bond with a $1,000 maturity value.The yield to maturity on the bonds was 3.5%.Ralph is not required to recognize the $291 ($1,000 - $709)original issue discount until the bond matures.
A)True
B)False
Q3) In some foreign countries,the tax law specifically designates the types of income items that are includible in gross income.How does this approach compare with the U.S.Internal Revenue Code (§ 61)? What is a major advantage to the approach used in the U.S.tax law?
To view all questions and flashcards with answers, click on the resource link above.
Page 6
Chapter 5: Gross Income: Exclusions
Available Study Resources on Quizplus for this Chatper
116 Verified Questions
116 Flashcards
Source URL: https://quizplus.com/quiz/71481
Sample Questions
Q1) The Perfection Tax Service gives employees $12.50 as "supper money" when they are required to work overtime,approximately 25 days each year.The supper money received:
A) Must be included in the employee's gross income.
B) Must be included in the employee's gross income if the employee does not spend it for supper.
C) May be excluded from the employee's gross income as a "no-additional cost" fringe benefit.
D) May be excluded from the employee's gross income as a de minimis fringe benefit.
E) None of the above.
Q2) John told his nephew,Steve,"if you maintain my house when I cannot,I will leave the house to you when I die.Steve maintained the house and when John died Steve inherited the house.The value of the residence must be included in Steve's gross income.
A)True
B)False
Q3) What are the tax problems associated with payments received by a wife from her deceased husband's employer? (Assume the wife renders no services to the employer.)
To view all questions and flashcards with answers, click on the resource link above.
Page 7
Chapter 6: Deductions and Losses: in General
Available Study Resources on Quizplus for this Chatper
154 Verified Questions
154 Flashcards
Source URL: https://quizplus.com/quiz/71480
Sample Questions
Q1) Only certain expenses associated with the production of income are classified as deductions for AGI.
A)True
B)False
Q2) While she was a college student,Juliet worked in a bookstore located near campus.She thinks a bookstore located on the other side of campus would be successful.She incurs expenses of $41,000 (accounting fees,marketing survey,etc.)in exploring its business potential.Her parents have agreed to loan her the money required to start the business.What amount of these investigation costs can Juliet deduct if: a.She opens the business in March 2011. b.She decides not to open the bookstore.
Q3) What are the relevant factors to be considered in determining whether an activity is profit-seeking or a hobby?
Q4) If a vacation home is a personal/rental residence,no maintenance and utility expenses can be claimed as a deduction.
A)True
B)False
Q5) What losses are deductible by an individual taxpayer?
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Deductions and Losses: Certain Business
Expenses and Losses
Available Study Resources on Quizplus for this Chatper
95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/71479
Sample Questions
Q1) If qualified production activities income (QPAI)cannot be used in the calculation of the domestic production activities deduction in 2011 because of the taxable income limitation,the product of the amount not allowed multiplied by 9% can be carried over for 5 years.
A)True
B)False
Q2) Last year,Amos had AGI of $50,000.Amos also had a diamond ring stolen which cost $20,000 and was worth $17,000 at the time of the theft.He itemized deductions on last year's tax return.In the current year,Amos recovered $17,000 from the insurance company.Therefore,he must include $11,900 in gross income on the tax return for the current year.
A)True
B)False
Q3) Identify the factors that should be considered in determining whether a transaction is a business bad debt or a nonbusiness bad debt.
Q4) A bona fide debt cannot arise on a loan between father and son.
A)True
B)False
Q5) How is qualified production activities income (QPAI)calculated?
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Depreciation, cost Recovery, amortization, and Depletion
Available Study Resources on Quizplus for this Chatper
116 Verified Questions
116 Flashcards
Source URL: https://quizplus.com/quiz/71478
Sample Questions
Q1) On February 15,2011,Martin signed a 20-year lease on a commercial building.In March 2011,Martin purchased and placed in service seven-year class assets costing $400,000.In June 2011,Martin paid $200,000 for qualified leasehold real property improvements.Martin desires to take the maximum cost recovery deduction with respect to the assets in 2011.Assuming taxable income is not a limitation,determine Martin's maximum cost recovery for 2011.
Q2) The amortization period in 2011 for $4,000 of startup expenses if no election is made is 180 months.
A)True
B)False
Q3) On April 15,2011,Sam placed in service a storage facility (a single-purpose agricultural structure)costing $80,000.Sam also purchased and planted fruit trees costing $40,000.Sam does not elect to expense any of the acquisitions under § 179.Sam elected not to take additional first-year depreciation.Determine Sam's cost recovery from these two items for 2011.
Q4) Rod paid $950,000 for a new warehouse on April 14,2011.He sold the warehouse on September 29,2016.Determine the cost recovery deduction for 2011 and 2016.
Q5) Discuss the reason for the inclusion amount with respect to leased automobiles. To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Deductions: Employee and
Self-Employed-Related Expenses
Available Study Resources on Quizplus for this Chatper
160 Verified Questions
160 Flashcards
Source URL: https://quizplus.com/quiz/71477
Sample Questions
Q1) An individual,age 40,who is not subject to the phase-out provision may contribute a deductible amount to a Roth IRA up to $5,000 per year in 2011.
A)True
B)False
Q2) Kelly,an unemployed architect,moves from Boston to Phoenix to accept a job as a chef at a restaurant.Kelly's moving expenses are not deductible because her new job is in a different trade or business.
A)True B)False
Q3) One indicia of independent contractor (rather than employee)status is when the individual performing the services is paid based on tasks performed (rather than time spent).
A)True B)False
Q4) A taxpayer who claims the standard deduction will not avoid the 2% floor on unreimbursed employee expenses.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Deductions and Losses: Certain Itemized
Deductions
Available Study Resources on Quizplus for this Chatper
106 Verified Questions
106 Flashcards
Source URL: https://quizplus.com/quiz/71503
Sample Questions
Q1) Rosie owned stock in Acme Corporation that she donated to a university (a qualified charitable organization)on September 6,2011.What is the amount of Rosie's charitable contribution deduction assuming that she had purchased the stock for $20,100 on October 22,2010,and the stock had a value of $28,200 when she made the donation?
A) $8,100.
B) $20,100.
C) $24,150.
D) $28,200.
E) None of the above.
Q2) Contributions to public charities in excess of 50% of AGI may be carried back 3 years or forward for up to 5 years.
A)True
B)False
Q3) Felix sells his personal residence to Julio on July 1,2011.He had paid $9,000 in real property taxes on March 1,2011,the due date for property taxes for 2011.Felix may deduct the portion of the taxes he paid for the period the property was owned by Julio.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Investor Losses
Available Study Resources on Quizplus for this Chatper
104 Verified Questions
104 Flashcards
Source URL: https://quizplus.com/quiz/71502
Sample Questions
Q1) Nora acquired passive activity A several years ago that until 2010 was profitable.However,the activity produced losses of $100,000 in 2010 and $50,000 in 2011.Nora had passive income from activity B of $40,000 in 2010 and $0 in 2011.How much loss is suspended from activity A in each year?
A) $60,000 in 2010 and $50,000 in 2011.
B) $100,000 in 2010 and $50,000 in 2011.
C) $0 in 2010 and $0 in 2011.
D) None of the above.
Q2) Gail exchanges passive Activity A,which has suspended losses of $15,000,for passive Activity B in a nontaxable exchange.The new owner of passive Activity A can offset the $15,000 suspended losses against passive income in the future.
A)True
B)False
Q3) Ken has a $40,000 loss from an investment in a partnership in which he does not materially participate.He paid $30,000 for his interest.How much of the loss is disallowed by the at-risk rules? How much is disallowed by the passive loss rules?
Q4) Explain how a taxpayer's at-risk amount in a business venture is adjusted periodically.
To view all questions and flashcards with answers, click on the resource link above.
Page 13
Chapter 12: Tax Credits and Payments
Available Study Resources on Quizplus for this Chatper
95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/71501
Sample
Questions
Q1) Black Company paid wages of $360,000,of which $80,000 was qualified wages for the work opportunity tax credit under the general rules.Black Company's deduction for wages for the year is:
A) $280,000.
B) $328,000.
C) $332,000.
D) $360,000.
E) None of the above.
Q2) George and Jill are husband and wife,ages 67 and 65 respectively.During the year,they receive Social Security benefits of $4,000 and have adjusted gross income of $11,000.Assuming they file a joint return,their tax credit for the elderly,before considering any possible limitation due to their tax liability,is:
A) $1,125.
B) $750.
C) $450.
D) $375.
E) None of the above.
Q3) Explain the purpose of the disabled access credit and describe the general characteristics of its computation.
To view all questions and flashcards with answers, click on the resource link above.
Page 14
Chapter 13: Property Transactions
Available Study Resources on Quizplus for this Chatper
95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/71500
Sample Questions
Q1) Tariq sold certain U.S.Government bonds and State of Oregon bonds at a loss to offset short-term capital gain from a previous transaction.He felt that the U.S.Government and State of Oregon bonds were "good" investments,so he repurchased identical securities within one week.Do these transactions constitute wash sales?
Q2) Define fair market value as it relates to property transactions.
Q3) Albert,age 57,leased a house for one year in Denver with an option to buy as his personal residence.At the end of the lease,he purchased the house.He lived there for an additional 25 months before his employer transferred him to Tucson.Expecting to be in Tucson for 18 to 24 months,he rented the Denver house for 18 months with an option to extend on a month to month basis for an additional 6 months.At the end of the 18-month period,Albert's employer offered him a permanent position in Tucson as branch manager.The tenant who had been occupying Albert's house in Denver purchased it at the end of the 24-month extended lease period.Is Albert eligible to elect exclusion treatment under § 121?
Q4) Under what circumstance is there recognition of some or all of the realized gain associated with the giving of boot by the taxpayer in a like-kind exchange?
Q5) For disallowed losses on related-party transactions,who has the right of offset?
Q6) Discuss the treatment of losses from involuntary conversions.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Property Transactions: Capital Gains and Losses
Available Study Resources on Quizplus for this Chatper
144 Verified Questions
144 Flashcards
Source URL: https://quizplus.com/quiz/71499
Sample Questions
Q1) Jason (now 37 years old)owns a collection of "video games" that he acquired when he was a teenager.He had forgotten about them until his mother sent them to him.She had discovered them in a box in her attic while she was cleaning out her house before selling it.Jason had originally acquired all the video games as gifts from his parents,so he has no way to establish a basis for the video games.Using information from the Internet,he prepares a careful inventory of the video games that includes their name,when they were first available for sale,their current value,and other pertinent information.He then lists them for sale on the Internet.To his surprise,he quickly gets an offer of $5,000 for all of them and sells them.Jason has no other gain or loss transactions for the year and is in the 25% marginal tax bracket.What issues do these facts create?
Q2) Residential real estate was purchased in 2008 for $145,000,held as rental property,and depreciated straight-line.Assume the land cost was $45,000 and the building cost was $100,000.Depreciation totaled $4,089.The building and land were sold on June 10,2011,for $383,000 total.What is the tax status of the property,the nature of the gain from the disposition,and is any of it § 1250 depreciation recapture gain or unrecaptured § 1250 gain?
Q3) What characteristics must the seller of a patent have in order to be classified as a holder?
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Alternative Minimum Tax
Available Study Resources on Quizplus for this Chatper
126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/71498
Sample Questions
Q1) If circulation expenditures are amortized over a ten-year period for regular income tax purposes,there will be no AMT adjustment.
A)True
B)False
Q2) Danica incurs circulation expenditures of $120,000 in 2011.No additional circulation expenditures are incurred in 2012 or 2013.The cumulative adjustment for circulation expenditures for 2011,2012,and 2013 is $120,000.
A)True
B)False
Q3) When qualified residence interest exceeds qualified housing interest,the positive adjustment required in calculating AMT is a timing adjustment.That is,in the future,there will be an offsetting negative adjustment.Comment on the validity of this statement.
Q4) Discuss the tax year in which an AMT adjustment is first required for an ISO.
Q5) The phaseout of the AMT exemption amount for a taxpayer filing as a head of household both begins and ends at a higher income level than it does for a single taxpayer.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Accounting Periods and Methods
Available Study Resources on Quizplus for this Chatper
87 Verified Questions
87 Flashcards
Source URL: https://quizplus.com/quiz/71497
Sample Questions
Q1) Robin Construction Company began a long-term contract in 2011.The contract price was $600,000.The estimated cost of the contract at the time it was begun was $450,000.The actual cost incurred in 2011 was $300,000.The contract was completed in 2012 and the cost incurred that year was $180,000.Under the percentage of completion method:
A) Robin should report $300,000 of income in 2011.
B) Robin should report a $30,000 loss in 2012.
C) Robin must pay interest (under the look-back method) on the overpayment of taxes in 2011.
D) Robin should report $60,000 profit on the contract in 2012.
E) Robin will receive interest (under the look-back method) on the overpayment of taxes in 2011.
Q2) A retailer must actually receive a claim for refund from the customer before a deduction can be taken for the refund.
A)True
B)False
Q3) What incentives do the tax accounting rules provide for taxpayers to voluntarily change from an incorrect method of accounting that has reduced the company's tax liability in prior years?
To view all questions and flashcards with answers, click on the resource link above.
Page 18
Chapter 17: Corporations: Introduction and Operating Rules
Available Study Resources on Quizplus for this Chatper
110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/71496
Sample Questions
Q1) Compare the taxation of C corporations with that of individual taxpayers.Provide several examples of similarities and differences in your discussion.
Q2) Rose is a 50% partner in Wren Partnership.During the year,Wren earned net profit of $100,000 ($210,000 gross income - $110,000 operating expenses)and distributed $20,000 to each partner.Rose must report Wren Partnership profit of $20,000 on her Federal income tax return.
A)True B)False
Q3) Income that is included in net income per books but not included in taxable income is an addition item on Schedule M-1.
A)True B)False
Q4) What is the annual required estimated tax payment for a C corporation? What are the rules regarding payment of the estimated tax?
Q5) A personal service corporation with taxable income of $100,000 will have a tax liability of $22,250.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Corporations: Organization and Capital Structure
Available Study Resources on Quizplus for this Chatper
93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/71495
Sample Questions
Q1) Mary transfers a building (adjusted basis of $15,000 and fair market value of $90,000)to White Corporation.In return,Mary receives 80% of White Corporation's stock (worth $65,000)and an automobile (fair market value of $5,000).In addition,there is an outstanding mortgage of $20,000 (taken out 15 years ago)on the building,which White Corporation assumes.With respect to this transaction:
A) Mary's recognized gain is $10,000.
B) Mary's recognized gain is $5,000.
C) Mary has no recognized gain.
D) White Corporation's basis in the building is $15,000.
E) None of the above.
Q2) Erica transfers land worth $500,000,basis of $100,000,to a newly formed corporation,Robin Corporation,for all of Robin's stock,worth $300,000,and a 10-year note.The note was executed by Robin and made payable to Erica in the amount of $200,000.As a result of the transfer:
A) Erica does not recognize gain.
B) Erica recognizes gain of $400,000.
C) Robin Corporation has a basis of $100,000 in the land.
D) Robin Corporation has a basis of $300,000 in the land.
E) None of the above.
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 19: Corporations: Distributions Not in Complete Liquidation
Available Study Resources on Quizplus for this Chatper
137 Verified Questions
137 Flashcards
Source URL: https://quizplus.com/quiz/71494
Sample Questions
Q1) In the current year,Loon Corporation made a distribution in redemption of some of its shares.Loon incurred expenditures in connection with the redemption totaling $35,000 (accounting fees of $9,000,legal fees of $20,000,and brokerage fees of $6,000).The distribution was a qualifying stock redemption.How much of the $35,000 is deductible in the current year?
A) $6,000.
B) $9,000.
C) $29,000.
D) $35,000.
E) None of the above.
Q2) Which of the following statements is incorrect with respect to determining current E & P?
A) All tax-exempt income should be added back to taxable income.
B) Dividends received deductions should be added back to taxable income.
C) Charitable contributions in excess of the 10% of taxable income limit should be subtracted from taxable income.
D) Federal income tax refunds should be added back to taxable income.
E) None of the above statements are incorrect.
Q3) Explain the stock attribution rules that apply in the case of stock redemptions.
Page 21
To view all questions and flashcards with answers, click on the resource link above.
Chapter 20: Corporations: Distributions in Complete
Liquidation and an Overview of Reorganizations
Available Study Resources on Quizplus for this Chatper
70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/71492
Sample Questions
Q1) All of the following statements are true about corporate reorganization except:
A) Taxable amounts for shareholders are classified as a dividend or capital gain.
B) Reorganizations receive treatment similar to corporate formations under § 351.
C) The transfers of stock to and from shareholders qualify for like-kind exchange treatment.
D) The value of the stock received by the shareholder less the gain not recognized (postponed) will equal the shareholder's basis in the stock received.
E) All of the above statements are true.
Q2) The gain recognized by a shareholder in a corporate reorganization is the difference between the realized gain and the boot received.
A)True
B)False
Q3) The gains shareholders recognize as a part of a corporate reorganization may be treated a dividend to the extent of the corporation's earnings and profits.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 21: Partnerships
Available Study Resources on Quizplus for this Chatper
161 Verified Questions
161 Flashcards
Source URL: https://quizplus.com/quiz/71491
Sample Questions
Q1) The LN partnership reported the following items of income and deduction during the current tax year: revenues,$200,000; cost of goods sold,$80,000; tax-exempt interest income,$5,000; salaries to employees,$50,000; and long-term capital gain,$5,000.In addition,the partnership distributed $10,000 of cash to 50% partner Nina and $20,000 of cash to 50% partner Len.What is Nina's share of ordinary partnership income and separately stated items?
Q2) Kevin,Cody,and Greg contributed assets to form the equal KCG Partnership.Kevin contributed cash of $50,000 and land with a basis of $80,000 (fair market value of $50,000).Cody contributed cash of $30,000 and land with a basis of $40,000 (fair market value of $70,000).Greg contributed cash of $60,000 and a fully depreciated property ($0 basis)valued at $40,000.Which of the following tax treatments is not correct?
A) Kevin's basis in his partnership interest is $130,000.
B) Cody's basis in his partnership interest is $100,000.
C) Greg's basis in his partnership interest is $60,000.
D) KCG has a basis of $80,000, $40,000, and $0 in the land and property (excluding cash) contributed by Kevin, Cody, and Greg, respectively.
E) All of these statement are correct.
To view all questions and flashcards with answers, click on the resource link above. Page 23
Chapter 22: S Corporations
Available Study Resources on Quizplus for this Chatper
157 Verified Questions
157 Flashcards
Source URL: https://quizplus.com/quiz/71490
Sample Questions
Q1) Distributions of which assets during an S corporation's post-termination period receive favorable income tax treatment?
A) Cash.
B) Automobile.
C) Real estate.
D) Notes receivable.
E) All of the above.
Q2) Depreciation recapture income is a ____________________ computed amount.
Q3) A(n)____________________ alien cannot own stock in an S corporation.
Q4) Tax-exempt income is a Schedule K item for an S corporation.
A)True B)False
Q5) To make a valid S election,the entity must file a properly completed Form ____________________.
Q6) The amount of any distribution to an S corporation shareholder is equal to the ____________________ plus the fair market value of any other property distributed..
Q7) A widower and his spouse's estate are treated as one shareholder.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 24
Chapter 23: Exempt Entities
Available Study Resources on Quizplus for this Chatper
151 Verified Questions
151 Flashcards
Source URL: https://quizplus.com/quiz/71489
Sample Questions
Q1) Is there a materiality exception associated with the unrelated business income tax?
Q2) What are intermediate sanctions and to what types of exempt organizations do they apply?
Q3) If an exempt organization conducts a trade or business that is regularly carried on by the organization,it is subject to the unrelated business income tax (UBIT).
A)True
B)False
Q4) A trade or business that is operated by an exempt organization which otherwise would be subject to the tax on unrelated business income is exempt from tax,if the profits generated by the trade or business are used by the exempt organization for exempt purposes.
A)True
B)False
Q5) An organization that is a for-profit entity can partially qualify for exempt status.
A)True
B)False
Q6) What income and activities are not subject to the feeder organization rules?
To view all questions and flashcards with answers, click on the resource link above.
Page 25
Chapter 24: Multistate Corporate Taxation
Available Study Resources on Quizplus for this Chatper
142 Verified Questions
142 Flashcards
Source URL: https://quizplus.com/quiz/71488
Sample Questions
Q1) The throwback rule requires that:
A) Sales of tangible personal property are attributed to the state where they originated, if the taxpayer is not taxable in the state of destination.
B) Sales of tangible personal property are attributed to the seller's state, even if the taxpayer is not taxable in the state of destination.
C) Sales of services are attributed to the state of commercial domicile.
D) Capital gain/loss is attributed to the state of commercial domicile.
Q2) The typical state sales/use tax falls on sales of both real and personal property. A)True B)False
Q3) Several states allow the S corporation to file a(n)____________________ income tax return,usually in the form of a state-by-state spreadsheet,on behalf of its out-of-state shareholders. or
Q4) A number of court cases in the last several decades have involved the application of a state's nexus rules concerning a business taxpayer.What is the significance of the term nexus when discussing state income taxation?
To view all questions and flashcards with answers, click on the resource link above.
Chapter 25: Taxation of International Transactions
Available Study Resources on Quizplus for this Chatper
155 Verified Questions
155 Flashcards
Source URL: https://quizplus.com/quiz/71487
Sample Questions
Q1) Gain or loss on the exchange of foreign currency is considered separately from the underlying transaction (e.g.,the purchase or sale of goods).
A)True
B)False
Q2) Kilps,a U.S.corporation,receives a $200,000 dividend from a 20% owned foreign corporation.The deemed-paid taxes attributable to this dividend are $40,000 and foreign taxes withheld on remittance of the dividend are $30,000.Kilps's U.S.tax liability before the FTC is $350,000,the gross dividend income is $240,000,and Kilps's worldwide taxable income is $1 million.Kilps's foreign tax credit for the taxable year is:
A) $84,000.
B) $70,000.
C) $40,000.
D) $30,000.
Q3) Income tax treaties may provide for either higher or lower withholding tax rates on interest income than the rate provided under U.S.statutory law.
A)True
B)False
Q4) Discuss the primary purposes of income tax treaties.
To view all questions and flashcards with answers, click on the resource link above.
Page 27
Chapter 26: Tax Practice and Ethics
Available Study Resources on Quizplus for this Chatper
147 Verified Questions
147 Flashcards
Source URL: https://quizplus.com/quiz/71486
Sample Questions
Q1) When a tax dispute is resolved,interest is paid by or to the government.List three or more features of the interest computations that arise when a tax return is audited.
Q2) A tax preparer is in violation of Circular 230 if he or she:
A) Files a tax return that includes a math error.
B) Charges a fee to prepare an original Form 1120 equal to one-third of the taxpayer's refund due.
C) Fails to inform the IRS of an error on the client's prior-year return.
D) All of the above are Circular 230 violations.
Q3) Yang,a calendar year taxpayer,did not file a tax return for 2005 because she honestly believed that no additional tax was due.In 2011,Yang is audited by the IRS and the agent assesses a deficiency of $17,000 for tax year 2005.Yang need not pay this deficiency,since the statute of limitations expired on April 15,2009.
A)True
B)False
Q4) A CPA and his/her client hold a privilege of confidentiality from the IRS,as to their discussions about completing a tax return.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 28
Chapter 27: The Federal Gift and Estate Taxes
Available Study Resources on Quizplus for this Chatper
169 Verified Questions
169 Flashcards
Source URL: https://quizplus.com/quiz/71485
Sample Questions
Q1) Eric dies at age 96 and is survived by his third wife,Monique (age 22),and a granddaughter,Paula (age 50).Eric's will divides his $11 million estate between these two survivors.Both of these transfers are subject to the generation skipping transfer tax (GSTT).
A)True
B)False
Q2) The election of the alternate valuation date cannot affect the amount of a charitable deduction allowed to an estate for a bequest to a qualified charity.
A)True
B)False
Q3) Daniel's will provides that all of his property passes to a trust,life estate to his wife,remainder to charity.If Daniel's executor does not make a QTIP election,the use of the alternate valuation date is possible.
A)True
B)False
Q4) In most cases,the gross estate of a decedent is larger than the probate estate.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 29
Chapter 28: Income Taxation of Trusts and Estates
Available Study Resources on Quizplus for this Chatper
140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/71484
Sample Questions
Q1) A complex trust can claim a Year 1 deduction for a gift to charity,where the contribution was made on October 20 of Year 2 out of gross income recognized in Year 1. A)True B)False
Q2) The grantor of a trust generally designates both ____________________ and ____________________ beneficiaries under the controlling agreement. or
Q3) The first step in deriving the taxable income of a trust or estate is to determine its ____________________ income.
Q4) The Gable Trust reports $20,000 business income and $10,000 exempt interest income,and it paid a $3,000 fiduciary fee.Gable's distributable net income is computed net of the full $3,000 deduction for the fees. A)True B)False
Q5) A gift to charity from its 2011 income is deductible on an estate's Form 1041 if it is made by the end of the ____________________ tax year.
Q6) The IRS encourages ____________________ filing for Forms 1041.
To view all questions and flashcards with answers, click on the resource link above.
Page 30