Individual Taxation Exam Materials
Course Introduction
Individual Taxation provides a comprehensive overview of federal income tax laws and regulations as they apply to individuals. The course explores the principles underlying the taxation of income, deductions, exemptions, and credits, and examines the procedures for tax compliance, reporting, and planning. Students will learn how to interpret tax statutes, apply rules to various personal financial situations, and prepare basic individual tax returns. Topics include gross income, capital gains and losses, itemized deductions, tax rates, and tax planning strategies, as well as the impact of life events such as marriage, divorce, and retirement on tax liability.
Recommended Textbook
South Western Federal Taxation 2012 Comprehensive by William H. Hoffman
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28 Chapters
3533 Verified Questions
3533 Flashcards
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Chapter 1: An Introduction to Taxation and Understanding
the Federal Tax Law
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Q1) Taxes levied by both states and the Federal government include:
A) General sales tax.
B) Custom duties.
C) Hotel occupancy tax.
D) Franchise tax.
E) None of the above.
Answer: E
Q2) Which,if any,of the following provisions of the tax law cannot be justified as promoting administrative feasibility (simplifying the task of the IRS)?
A) Penalties are imposed for failure to file a return or pay a tax on time.
B) Prepaid income is taxed in the year received and not in the year earned.
C) Annual adjustments for indexation increases the amount of the standard deduction allowed.
D) Casualty losses must exceed 10% of AGI to be deductible.
E) A deduction is allowed for charitable contributions.
Answer: E
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Chapter 2: Working With the Tax Law
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Sample Questions
Q1) Compare a determination letter with a letter ruling.
Answer: Like letter rulings,determination letters are issued at the request of taxpayers and provide guidance on the tax law.Determination letters differ from letter rulings in that the issuing source of a determination letter is the Area Director rather than the National Office of the IRS.Also,determination letters usually involve completed (as opposed to proposed)transactions.Determination letters are not published and are made known only to the party making the request.
Q2) The Internal Revenue Code of 1986 was substantially a re-codification of the existing Code.
A)True
B)False
Answer: False
Q3) Which publisher offers the United States Tax Reporter?
A) Research Institute of America.
B) Commerce Clearing House.
C) LexisNexis.
D) Tax Analysts.
E) None of the above.
Answer: A
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Page 4
Chapter 3: Tax Determination: Personal and Dependency
Exemptions: an Overview of Property Transactions
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Q1) The Hutters filed a joint return for 2011.They provide more than 50% of the support of Carla,Melvin,and Aaron.Carla (age 20)is a cousin and earns $3,000 from a part-time job.Melvin (age 25)is their son and is a full-time law student.He received from the university a $3,800 scholarship for tuition.Aaron is a brother who is a citizen of Israel but resides in France.Carla and Melvin live with the Hutters.How many personal and dependency exemptions can the Hutters claim on their Federal income tax return?
A) Two.
B) Three.
C) Four.
D) Five.
E) None of the above.
Answer: C
Q2) Albert buys his mother a TV.For purposes of meeting the support test,Albert can include the cost of the TV.
A)True
B)False
Answer: True
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Page 5
Chapter 4: Gross Income: Concepts and Inclusions
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Q1) José,a cash method taxpayer,is a partner in J&T Accounting Services,a calendar year partnership.Under the partnership agreement,José is to receive 20% of the partnership's profits or losses.Each partner is allowed to withdraw $10,000 each month for his or her living expenses.José withdrew $120,000 during the year as his monthly draw in 2011.However,in December the partnership was short on cash and José was required to invest an additional $10,000 in the partnership.In March 2011,José received $40,000 as his share of distributed 2010 profits.The partnership earnings before partners' withdrawals for 2011 totaled $1 million.Compute José's gross income from the partnership for 2011.
Q2) The effects of a below-market loan for $450,000 made by a corporation to its chief executive officer as an enticement to get him to remain with the company are:
A) The corporation has imputed interest income and dividends paid.
B) The employee has imputed compensation income and interest expense.
C) The employee has no income unless the funds are invested and produce investment income for the year.
D) The corporation has imputed interest expense.
E) None of the above.
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Chapter 5: Gross Income: Exclusions
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Q1) Ashley received a scholarship to be used as follows: tuition $9,000; room and board $6,000; and books and laboratory supplies $2,000.Ashley is required to include only $6,000 in her gross income.
A)True
B)False
Q2) Bob had a terminal illness and realized that he "can't take it with him." Therefore,he cashed in his insurance policy and received $120,000.He had paid $50,000 in premiums on the policy.He used the money to fulfill his lifelong ambitions of going to the Super Bowl,driving an expensive sports car,and vacationing in Bermuda. Was Bob's behavior consistent with the Congressional intent in providing the tax exemption he was permitted to use?
Q3) Fresh Bakery often has unsold donuts at the end of the day.The bakery allows employees to take the leftovers home.The employees are not required to recognize gross income because the bakery does not incur any additional cost.
A)True
B)False
Q4) What Federal income tax benefits are provided for college students?
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Chapter 6: Deductions and Losses: in General
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Q1) Abner contributes $1,000 to the campaign of the Tea Party candidate for governor.Can Abner deduct this political contribution?
Q2) Ruth and Jeff own an unincorporated hardware store.They determine their salaries at the end of the year by using the amount required to reduce the net income of the hardware store to $0.Based on this policy,Ruth and Jeff each receive a total salary of $175,000.This is paid as follows: $10,000 per month and $55,000 on December 31.Determine the amount of the salary deduction.
Q3) For purposes of the § 267 loss disallowance provision,a taxpayer's aunt is a related party.
A)True
B)False
Q4) Which of the following cannot be deducted as a § 162 business expense?
A) Expenses of investing in rental property.
B) Charitable contributions made by a sole proprietorship.
C) Fines and penalties.
D) Only a. and c. cannot.
E) a., b., and c. cannot.
Q5) For a vacation home to be classified in the primarily rental use category,what attributes must be present?
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Chapter 7: Deductions and Losses: Certain Business
Expenses and Losses
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Q1) When a nonbusiness casualty loss is spread between two taxable years,the loss in the second year is reduced by 10% of adjusted gross income for the first year.
A)True
B)False
Q2) Taxpayer's home was destroyed by a storm in the current year and the area was declared a disaster area.If the taxpayer elects to treat the loss as having occurred in the prior year,it will be subject to the 10%-of-AGI reduction based on the AGI of the prior year.
A)True B)False
Q3) A father cannot claim a casualty on his daughter's personal use property. A)True B)False
Q4) Identify the factors that should be considered in determining whether a transaction is a business bad debt or a nonbusiness bad debt.
Q5) A business bad debt can offset an unlimited amount of ordinary income. A)True B)False
Page 9
Q6) How is qualified production activities income (QPAI)calculated?
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Chapter 8: Depreciation, cost Recovery, amortization, and Depletion
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Q1) Goodwill associated with the acquisition of a business cannot be amortized.
A)True
B)False
Q2) On February 21,2011,Joe purchased new farm equipment for $600,000.Joe has made an election to not have the uniform capitalization rules apply to his farming business.He elects not to take additional first-year depreciation.If Joe elects § 179,what is the maximum write-off for this purchase for 2011?
Q3) Doug purchased a new factory building on January 15,1988,for $400,000.On March 1,2011,the building was sold.Determine the cost recovery deduction for the year of the sale assuming he did not use the MACRS straight-line method.
A) $0.
B) $1,587.
C) $2,645.
D) $12,696.
E) None of the above.
Q4) On August 20,2010,May signed a 10-year lease on a building for her business.On November 28,2011,May paid $80,000 for a qualified leasehold improvement to the building.What is May's cost recovery deduction for the improvement in 2011?
Page 10
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Chapter 9: Deductions: Employee and
Self-Employed-Related Expenses
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Sample Questions
Q1) Qualifying job search expenses are deductible even if the taxpayer does not change jobs.
A)True
B)False
Q2) When using the automatic mileage method,which,if any,of the following expenses also can be claimed?
A) Engine tune-up.
B) Auto insurance.
C) Toll charges.
D) MACRS depreciation.
E) None of the above.
Q3) Janet,who lives and works in Newark,travels to Atlanta for a Thursday-Friday business conference.She stays over after the conference and visits relatives and friends on Saturday.Under certain circumstances,the meals and lodging expenses for Saturday can be considered as business related.
A)True
B)False
Q4) Concerning the deduction for moving expenses,what circumstances,if any,will excuse a taxpayer from meeting the time test of 39 or 78 weeks?
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Chapter 10: Deductions and Losses: Certain Itemized
Deductions
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Q1) Sergio was required by the city to pay $2,000 for the cost of new curbing installed by the city in front of his personal residence.The new curbing was installed throughout Sergio's neighborhood as part of a street upgrade project.Sergio may not deduct $2,000 as a tax,but he may add the $2,000 to the basis of his property. A)True
B)False
Q2) For purposes of computing the deduction for qualified residence interest,a qualified residence includes only the taxpayer's principal residence. A)True
B)False
Q3) Antonio sold his personal residence to Mina on July 1,2011.He had paid real property taxes on March 1,2011,the due date for property taxes for 2011.How will Antonio's payment affect his deduction for property taxes in 2011? Will Antonio's payment of the taxes have any effect on Mina's itemized deductions for 2011? What other tax or financial effects will Antonio's payment of the taxes have on either party?
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Page 12
Chapter 11: Investor Losses
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Sample Questions
Q1) Ned,a college professor,owns a separate business (not real estate)in which he participates in the current year.He has one employee who works part-time in the business.
A) If Ned participates for 120 hours and the employee participates for 120 hours during the year, Ned does not qualify as a material participant.
B) If Ned participates for 95 hours and the employee participates for 5 hours during the year, Ned probably does not qualify as material participant.
C) If Ned participates for 500 hours and the employee participates for 520 hours during the year, Ned qualifies as material participant.
D) If Ned participates for 600 hours and the employee participates for 2,000 hours during the year, Ned qualifies as a material participant.
E) None of the above.
Q2) Identify the types of income that are classified as investment income.Discuss the flexibility that a taxpayer has with respect to certain types of income that may potentially be considered investment income.
Q3) Describe the general rules that limit the deduction of investment interest expense.
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Chapter 12: Tax Credits and Payments
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Q1) Any unused general business credit must be carried back 3 years and then forward for 20 years.
A)True
B)False
Q2) Roger is considering making a $6,000 investment in a venture that its promoter promises will generate immediate tax benefits for him.Roger,who does not anticipate itemizing his deductions,is in the 30% marginal income tax bracket.If the investment is of a type that produces a tax credit of 40% of the amount of the expenditure,by how much will Roger's tax liability decline because of the investment?
A) $0.
B) $1,800.
C) $2,200.
D) $2,400.
E) None of the above.
Q3) In computing the foreign tax credit,the greater of the foreign income taxes paid or the overall limitation is allowed.
A)True
B)False
Q4) Discuss the treatment of unused general business credits.
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Chapter 13: Property Transactions
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Sample Questions
Q1) Rose's manufacturing plant is destroyed by fire on the afternoon of November 1,2011.The adjusted basis is $800,000.The insurance company offers a settlement of $760,000.After protracted negotiations,Rose receives $810,000 on July 25,2012.Rose is a fiscal year taxpayer whose tax year ends on June 30th.What is the latest date that Rose can invest the proceeds in qualifying replacement property and elect to defer the gain under § 1033?
Q2) 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?
Q3) Sandy and Greta form Tan,Inc.by transferring the following assets to the corporation in exchange for 1,000 shares of stock each.
Sandy: Cash of $200,000
Greta: Land (worth $200,000; adjusted basis of $75,000). How much gain must Tan recognize on the receipt of these assets?
Q4) 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?
Q5) Discuss the treatment of realized gains from involuntary conversions.
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Chapter 14: Property Transactions: Capital Gains and Losses
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Sample Questions
Q1) The only things that the grantee of an option may do with an option are to exercise it or sell or to exchange it.
A)True
B)False
Q2) Seamus had $16,000 of net short-term capital loss in 2010.In 2011,Seamus has $15,000 of long-term capital loss and $26,000 of long-term capital gain.Which of the following statements is correct?
A) Seamus had a $13,000 short-term capital loss carryover to 2011.
B) Seamus has an $11,000 2011 net long-term capital gain.
C) Seamus has a $2,000 2011 net short-term capital loss.
D) a. and c.
E) None of the above.
Q3) A net short-term capital loss first offsets any 28% net long-term capital gain before it offsets either 25% net long-term capital gain or 0%/15% net long-term capital gain.
A)True
B)False
Q4) Section 1245 may apply to amortizable § 197 intangible assets.
A)True
B)False
Page 16
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Chapter 15: Alternative Minimum Tax
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Q1) What is the relationship between taxable income and AMTI? The indirect method,rather than the direct method,is normally used to calculate the AMT (i.e.,the starting point is taxable income).
Q2) Celia and Amos,who are married filing jointly,have one dependent and do not itemize deductions.They have taxable income of $82,000 and tax preferences of $53,000 in 2011.What is their AMT base for 2011?
A) $0.
B) $85,175.
C) $94,450.
D) $157,700.
E) None of the above.
Q3) Brady's regular income tax liability is $300,000 and his tentative AMT is $350,000.Brady's AMT is:
A) $0.
B) $50,000.
C) $350,000.
D) $650,000.
E) None of the above.
Q4) Why is there no AMT adjustment for charitable contributions?
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Chapter 16: Accounting Periods and Methods
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Q1) Hal sold land held as an investment with a fair market value of $100,000 for $36,000 cash and a note for $64,000 that was due in two years.The note bore interest of 11% when the applicable Federal rate was 7%.Hal's cost of the land was $40,000.Because of the buyer's good credit record and the high interest rate on the note,Hal thought the fair market value of the note was at least $74,000.
A) Hal can elect to treat the $36,000 as a recovery of capital.
B) Hal must recognize $60,000 gain in the year of sale.
C) Hal must recognize $36,000 gain in the year of sale.
D) Unless Hal elects not to use the installment method, Hal must recognize $21,600 gain in the year of sale.
E) None of the above.
Q2) Red Corporation and Green Corporation are equal partners in the R & G Partnership.Red Corporation's tax year ends September 30th,and Green Corporation is a calendar year taxpayer.R & G Partnership must use September 30th as its tax year,unless it has a business purpose for using a different tax year.
A)True B)False
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Page 18
Chapter 17: Corporations: Introduction and Operating Rules
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Q1) Almond Corporation,a calendar year C corporation,had taxable income of $900,000,$1.1 million,and $790,000 for 2008,2009,and 2010,respectively.Almond's taxable income is $1.5 million for 2011.Compute the minimum estimated tax payments for 2011 for Almond Corporation.
Q2) Ed,an individual,incorporates two separate businesses that he owns by establishing two new corporations.Each corporation generates taxable income of $50,000.Each corporation will have a tax liability of $7,500.
A)True
B)False
Q3) A personal service corporation with taxable income of $100,000 will have a tax liability of $22,250.
A)True
B)False
Q4) For a corporation in 2011,the domestic production activities deduction is equal to 9% of the higher of (1)qualified production activities income or (2)taxable income.However,the deduction cannot exceed 50% of the W-2 wages related to qualified production activities income.
A)True
B)False
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Chapter 18: Corporations: Organization and Capital Structure
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Q1) Carl transfers land to Cardinal Corporation for 90% of the stock in Cardinal Corporation worth $20,000 plus a note payable to Carl in the amount of $40,000 and the assumption by Cardinal Corporation of a mortgage on the land in the amount of $100,000.The land,which has a basis to Carl of $70,000,is worth $160,000.
A) Carl will have a recognized gain on the transfer of $90,000.
B) Carl will have a recognized gain on the transfer of $30,000.
C) Cardinal Corporation will have a basis in the land transferred by Carl of $70,000.
D) Cardinal Corporation will have a basis in the land transferred by Carl of $160,000.
E) None of the above.
Q2) The definition of property for purposes of § 351 includes unrealized receivables transferred by a cash basis taxpayer.
A)True
B)False
Q3) In a § 351 transaction,if a transferor receives consideration other than stock,the transaction can be taxable.
A)True
B)False
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Page 20
Chapter 19: Corporations: Distributions Not in Complete Liquidation
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Q1) A shareholder's basis in property received in a stock redemption is the property's fair market value.
A)True
B)False
Q2) When current E & P has a deficit and accumulated E & P is positive,the two accounts are netted at the date of the distribution.If a positive balance results,the distribution is a dividend to the extent of the balance.
A)True
B)False
Q3) A distribution in excess of E & P is treated as capital gain by shareholders.
A)True
B)False
Q4) A shareholder's holding period of property acquired in a stock redemption begins on the date of the distribution.
A)True B)False
Q5) For tax purposes,all stock redemptions are treated as dividend distributions.
A)True B)False
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Chapter 20: Corporations: Distributions in Complete
Liquidation and an Overview of Reorganizations
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Q1) A shareholder bought 2,000 shares of Zee Corporation for $90,000 several years ago.When the stock is valued at $200,000,Zee redeems these shares in exchange for 6,000 shares of Yea Corporation stock.This transaction meets the requirements of § 368.Which of the following statements is true with regard to this transaction?
A) The shareholder has a recognized gain of $110,000.
B) The shareholder has a postponed gain of $110,000.
C) The shareholder has a basis in the Yea stock of $200,000.
D) Gain or loss cannot be determined because the value of the Yea stock is not given.
E) None of the above statements is true.
Q2) Cocoa Corporation is acquiring Milk Corporation in a "Type A" reorganization by exchanging 40% of its voting stock and $50,000 for all of Milk's assets (value of $850,000 and basis of $600,000)and liabilities ($200,000).The shareholders of Milk are Elsie (650 shares)and Ferdinand (350 shares).They bought their stock for $500 per share.What is the value of the stock that Elsie and Ferdinand received from Cocoa? What is the amount of gains or losses they will recognize due to the reorganization and what is their basis in the Cocoa stock?
Q3) Describe the requirements for and tax consequences of a § 338 election.
Q4) Discuss the role of letter rulings in corporate reorganizations.
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Chapter 21: Partnerships
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Q1) Martha receives a proportionate nonliquidating distribution when the basis of her partnership interest is $50,000.The distribution consists of $60,000 cash and noninventory property (adjusted basis to the partnership of $20,000; fair market value of $23,000).How much gain or loss does Martha recognize,and what is her basis in the distributed property and in her partnership interest following the distribution?
A) $0 gain or loss; $20,000 basis in property; $0 basis in partnership interest.
B) $0 gain or loss; $23,000 basis in property; $2,000 basis in partnership interest.
C) $10,000 capital gain; $0 basis in property; $0 basis in partnership interest.
D) $10,000 capital gain; $20,000 basis in property; $0 basis in partnership interest.
E) $10,000 ordinary income; $0 basis in property; $10,000 basis in partnership interest.
Q2) In a proportionate nonliquidating distribution of cash and a capital asset,the partner recognizes gain to the extent the amount of cash distributed exceeds the partner's basis in the partnership interest.
A)True B)False
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Chapter 22: S Corporations
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Q1) A qualifying S election requires the consent of ____________________ of the corporate shareholders. or
Q2) Claude Bergeron sold 1,000 shares of Ditta,Inc.,an S corporation located in Concord,North Carolina,for $12,000.He had owned the stock for three years and had a stock basis of $111,000 in the shares.Claude is single,and he is the original owner of the § 1244 stock shares.Calculate the appropriate tax treatment of any gain or loss.
A) No gain or loss.
B) $50,000 LTCL; $49,000 ordinary deduction.
C) $50,000 ordinary deduction; $49,000 LTCL.
D) $99,000 long-term capital loss.
E) None of the above.
Q3) An S corporation may be subject to the following tax:
A) Corporation income tax (§ 11).
B) Passive investment income tax.
C) Alternative minimum tax.
D) None of the above applies to S corporations.
Q4) Discuss the two methods of allocating S items to shareholders.
Q5) An S corporation is limited to ____________________ (how many?)shareholders.
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Chapter 23: Exempt Entities
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Q1) Radio,Inc.,an exempt organization,trains disabled individuals to be radio announcers.Rather than hold a traditional graduation exercise,the graduates compete in a radio announcer contest.Such activities are held four times each year.An admission fee of $10 is charged to the general public to attend the contest.Eight hundred people attended the contest this year,and prizes of $2,000 were given to the top 3 graduates.Calculate the amount of Radio's unrelated business income from this activity.
Q2) Which requirements must be satisfied for an exempt organization to be classified as an unrelated trade or business? Is being classified as an unrelated trade or business good or bad?
Q3) Which of the following statements regarding the disclosure Regulations is correct?
A) Posting the required tax forms on the Internet is an acceptable technique for satisfying the "widely available requirement."
B) Forms 990 and 1023 must be readily available to the general public.
C) If an individual requests a copy of the required tax forms in writing, the exempt entity must provide a copy within 30 days.
D) Only a. and b. are correct.
E) a., b., and c. are all correct.
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25
Chapter 24: Multistate Corporate Taxation
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Q1) All of the U.S.states use the same apportionment formula and factors.
A)True
B)False
Q2) Identify some state/local income tax issues facing pass-through entities such as S corporations,partnerships,and LLCs.
Q3) For most taxpayers,which of the traditional apportionment factors yields the greatest opportunities for tax reduction?
A) Payroll.
B) Property.
C) Unitary.
D) Sales (gross receipts).
Q4) A use tax applies when a State A resident purchases:
A) A new automobile from a State A dealership.
B) A used automobile from the web site of a State A dealership.
C) A new automobile from a State B dealership, then using the car back at home.
D) Hardware from sears.com rather than at the Best Buy store at the local mall.
Q5) You attend a tax webinar in which the presenter mentions the "ultimate destination concept." Define this term,and identify at least two of the most important exceptions to the general rule.
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Chapter 25: Taxation of International Transactions
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Sample Questions
Q1) Certain portfolio income items (i.e.,foreign personal holding company income)is included under the tax rules as Subpart F income for controlled foreign corporations ( CFCs).What is the rationale for taxing these income items? Include two examples of foreign personal holding company income.
Q2) 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
Q3) U.S.income tax treaties:
A) Provide rules by which multinational taxpayers avoid double taxation.
B) Provide for taxation exclusively by the source country.
C) Provide that the country with the highest tax rate will be allowed exclusive tax collection.
D) Provide for taxation exclusively by the country of residence.
Q4) 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
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Chapter 26: Tax Practice and Ethics
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147 Verified Questions
147 Flashcards
Source URL: https://quizplus.com/quiz/71486
Sample Questions
Q1) When a practitioner discovers an error in a client's prior return,AICPA tax ethics rules require that an amended return immediately be filed.
A)True
B)False
Q2) A taxpayer can be subject to both ____________________ and ____________________ penalties for tax misconduct. or
Q3) During any month in which both the failure-to-file and failure-to-pay penalties apply,both penalties must be paid in full.
A)True
B)False
Q4) Babs filed an amended return in 2011,claiming a refund relative to her 2009 tax computation.When the IRS approves the amended return,it will pay Babs interest with respect to the overpayment.
A)True
B)False
Q5) The accuracy-related penalties typically relate to ____________________on the part of the taxpayer,or other understatements of tax.
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Chapter 27: The Federal Gift and Estate Taxes
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169 Verified Questions
169 Flashcards
Source URL: https://quizplus.com/quiz/71485
Sample Questions
Q1) A transfer in trust in which the trustee has the power to accumulate income is not a gift of a future interest if the trustee never exercises the power.
A)True
B)False
Q2) An estate tax is a tax on the right of an heir to receive property on the death of the owner.
A)True
B)False
Q3) Some of the charitable organizations that qualify for estate tax purposes do not qualify for income tax purposes.
A)True
B)False
Q4) At the time of his death,Gene held a Roth IRA account with his wife as the designated beneficiary.The IRA is included in Gene's gross estate.
A)True
B)False
Q5) Madeline pays for her mother's nursing home expenses.Under what conditions might such payments not be a gift?
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Chapter 28: Income Taxation of Trusts and Estates
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140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/71484
Sample Questions
Q1) A Form 1041 must be filed by an estate that recognizes $____________________ or more gross income for the tax year.
Q2) One-third of the Hermann Estate's distributable net income consists of qualifying dividends.Thus,when income beneficiary Susie receives a $30,000 income distribution from the estate,$10,000 of it qualifies for the 15% tax rate.
A)True
B)False
Q3) The Whitmer Trust operates a manufacturing business and distributes the profits to its income beneficiaries.Whitmer passes through to the income beneficiaries the data needed to compute their domestic production activities deduction.
A)True
B)False
Q4) How is entity accounting income computed? What role does it play in Subchapter J?
Q5) The Leonardo Estate operates a business and generates cost recovery deductions.Which taxpayer(s),if any,can deduct these items,e.g.,the deceased,the estate,the income or remainder beneficiaries?
Q6) Every ____________________ trust is allowed a $300 personal exemption.
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