1. Joe is self-employed. He pays $2,400 for health insurance premiums for himself. Joes wife is employed and her employer provides her with health insurance benefits. Joe is eligible to be covered by his wifes insurance plan but chooses to obtain his own health insurance. Joe cannot deduct the $2,400 he pays for health insurance FOR AGI.

		A. true.
		B. false.

2. Jenny is self-employed. For 2020, Jennys deduction for of self-employment taxes is $5,000. Is the $5,000 a deduction FOR AGI or FROM AGI?

		A. for.
		B. from.

3.Which of the following taxes will not qualify as an itemized deduction?

		A. personal property taxes assessed on the value of specific property.
		B. state, local, and foreign income taxes.
		C. real estate taxes on a residence.
		D. federal income tax payments.

4. Joe is an accountant who raises and sells shih-tzu puppies as a hobby. Joe earned $5,000 in 2020 from the sale of the puppies and incurred $1,000 in expenses related to the sales. What is the effect of the hobby on Joes taxable income?

		A. increase in taxable income of $5,000.
		B. increase in taxable income of $4,000.
		C. no change in taxable income.
		D. decrease in taxable income of $1,000.

5. Andrea has $4,000 of short-term capital losses and a collectibles gain of $6,000. What is the maximum rate that will apply to her net gains?

		a. 28%.
		b. 15%.
		c. zero.
		d. 25%.

6. Junie is single. Her federal marginal income tax rate of 35% and her taxable income without regard to her capital asset transactions is $21,000. Junie sold 200 shares of GE stock this year (purchased six months ago) for a total gain of $5,000. How much federal income tax will she pay as a result of these transactions.

		a. zero.
		b. $1,750.
		c. $750.
		d. None of the above.

7. Lulu, an architect, owns two dogs named Salt and Pepper. Would Salt and Pepper qualify as capital assets (assuming Lulu does not have any business interests related to them)?

		a. yes.
		b. no.

8. Donna is a single taxpayer. Her AGI in 2020 is $81,200. Donna may claim a child tax credit for her daughter Persephone. What amount of child tax credit is Donna entitled to claim after any applicable phase-out?

		a. zero.
		b. $2,000.
		c. $1,000.
		d. $600.

9. Opal, age 48, fell on the ice and injured her hip this winter. As a result she paid $3,000 for a visit to the hospital emergency room and $750 for follow-up visits with her doctor. While she recuperated, Opal paid $500 for prescription medicine, $20 for over-the-counter medicine, and $600 to a therapist for rehabilitation. Opals AGI for the year is $30,000. What is the amount of Opal's qualifying medical expense deduction after applying her AGI limitation?

		a. $1,850.
		b. $2,600.
		c. Zero.
		d. $4,850.

10.

Jenna donated land to a library, a public charity. She purchased the land as an investment, five years ago for $25,000, and on the date of the gift, it had a fair market value of $100,000. What is her maximum charitable contribution deduction for the year if her AGI is $150,000?

		a. $100,000.
		b. $25,000.
		c. $45,000.
		d. $75,000.