150. Generally, under final Capitalization and Repairs regulations, a taxpayer must capitalize as an improvement an amount paid for which of the following? A. For a betterment to the unit of property B. To restore the unit of property C. To adapt the unit of property to a new or different use D. All of the above 155. Joe is 57 years old and unemplowed. He decides to take an early withdrawal or distributon from nis trea to mane ends peot: Which of the following apply to Joe as a result of this transaction? R. Joe incurs a 10% Federal penaly because he withdrew funds for an unqualifed purpose before he was 59% years old B. Joe incurs a 15% Federal penally because he withdrew funds for an unqualified purpose before he was 59% years old C. Joe incurs a 20% Federal penalty because he withdrew funds for an unqualified purpose before he was 59% years old D. Joe does not incur a penalty because he is over the age of 55 156. Peter is 38 years old and has just purchased his first home. In order to come up with the down payment he Withdraws $10,000 from a traditional IRA account he set up when he was 18. Which of the following apples to Peter as a result of this transaction? A. He incurs no penalty if he redeposits the funds into his IRA within 5 years B. He incurs no penalty since he is a first-time homebuyer, used the funds for this purpose, and did not exceed the maximum withdrawal amount of $10.000 C. He incurs a 15% Federal penalty for withdrawing funds before he was 59% years old D. He incurs a 20% Federal penalty for withdrawing funds betore he was 50% years old 157. Elizabeth works for the Rockland Quarry Company, a small business with 50 employees. Rockland has decided to establish a SIMPLE IRA plan for its employees and will match its employees' contributions dollar-for-dollar up to 3% of each employee's compensation. Elizabeth has a yearly compensation of $50,000 and contributes 5% of her compensation to her SIMPLE IRA. What is the total contribution to Elzabett's SIMPLE IRA for 2021? A. $0. B. $2,000 C. $2,500 D. $4,000 158. Which of the following is a false statement regarding a direct rollover option distribution to another qualified retirement plan? A. To be a direct eligible rollover, the taxpayer must pay withholding tax on the amount being rolled over B. On a direct eligible rollover, no tax will be withheld from any part of the distribution C. The taxpayer may choose to have any part or all of an eligible rollover distribution paid directly to another retirement plan
