Contributions by a self-employed individual to a SEP plan for 2019 are limited to the lesser of a percent of net earned income or: a. $19,000 b. $56,000 Oc. so d. $55,000 e. None of these choices are correct. Caprice is a single 42-year-old with income of $14,000 in 2019. She lacked minimum essential coverage for 7 months in 2019. What is her individual shared responsibility payment amount? a. $405.44 b. $695.00 C. $0 d. $50.00 e. None of these choices are correct. Which of the following is not an adjustment or tax preference item for 2019 for purposes of the individual alternative minimum tax (AMT)? a. Certain passive losses b. Interest from private activity bonds c. Cash charitable contributions d. State income tax refunds e. All of these choices are adjustment or tax preference items for AMT. Which of the following types of interest are likely to be deductible in 2019? a. Interest on personal credit cards b. Interest on a $90,000 home equity line used to pay college tuition c. Interest on a $40,000 home equity line used to buy a car d. Interest on a $150,000 mortgage on a principle residence e. All of these choices are likely to be deductible. Which of the following is true about the self-employed health insurance deduction? a. Long-term care insurance is allowed as a deduction, subject to a dollar limitation. b. Medical insurance is allowed as a deduction, subject to a dollar limitation. c. Life insurance is allowed as a deduction. d. The cost of insurance for dependent children is not allowed. e. Dental insurance is not part of the allowable deduction. Becky is a cash basis taxpayer with the following transactions during her calendar tax year: Cash basis revenue Cash basis expenses, except rent Rent expense (paid on December 1) for use of a building for 24 months $54,000 25,000 24,000 What is the amount of Becky's taxable income from her business for this tax year? a. $11,000 b. $27,500 c. $28,000 d. $7,000 loss e. None of these choices are correct. A taxpayer places a $50,000 5-year recovery period asset in service in 2019. This is the only asset placed in service in 2019. Assuming half-year convention, no bonus depreciation, an election to expense under Section 179, and taxable income after all deductions except Section 179 of $5,000, what is the amount of Section 179 immediate expensing? a. $30,000 b. $25,000 C. $50,000 d. $0 e. $5,000