QUESTION 11 Choose the incorrect statement a Almost all individuals file tax returns using a calendar year accounting period b Books and records may be kept on a different year end basis than the year end used for tax purposes c An individual may request IRS approval to change to a fiscal year end basis if certain conditions are met d The choice to file on a fiscal year end basis must be made with an initial tax return QUESTION 12 In 2019, which of the following children would have income taxed at trust and estate rates a A 13 year old child with salary income of $12,000 b A 9 year old child with salary income of $1,000 c All of these d A nonstudent, 19 year old child with net unearned income of $12,000 e A 12 year old child with net unearned income of $3,200 QUESTION 13 The 0 9 percent Medicare tax applies to a Tax exempt income b IRA distributions c Earned income d Gain on the sale of a principal residence QUESTION 14 Which of the following itemized deductions may not be deducted in computing the individual alternative minimum tax a Charitable deductions b All of these c State income taxes d Qualified home mortgage interest e Medical expenses (limited to 10 percent of AGI) QUESTION 15 Which of the following items may be subject to the self employment tax a A partner's distributive share of partnership income b Dividend income c Capital gains d Interest income e None of these QUESTION 16 Which of the common deductions below are allowed for both regular tax purposes and for AMT purposes in 2019 a The standard deduction b Personal and dependency exemptions c Mortgage interest from the acquisition of a residence with a loan balance less than $750,000 d Miscellaneous itemized deductions taken on Schedule A e State income taxes, property taxes, and all other taxes deducted on Schedule A QUESTION 17 Melody and Todd are married and have employee wages of $250,000 each in 2019 They have no other income How much additional 0 9 Medicare tax will Melody and Todd have to pay or receive as a refund when they file their 2019 income tax return a $900 will be refunded with their return b $3,600 will be due with their return in addition to amounts withheld c $1,350 will be due with their return in addition to amounts withheld d $1,350 will be refunded with their return QUESTION 18 Mary sells to her father, Robert, her shares in AA Corp for $55,000 The shares cost Mary $80,000 How much loss may Mary claim from the sale a None of these is correct b $55,000 c $80,000 d $0 e $25,000 QUESTION 19 Peter and Joan are married and Joan has self employment income of $240,000 Peter is retired How much additional 0 9 Medicare tax will Peter and Joan owe with their 2019 income tax return a $360 b $0 c They will receive a $90 refund d $2,160 QUESTION 20 Self employment taxes a Consist of Medicare tax and Social Security tax b Apply to taxpayers with less than $400 in self employment earnings c Are calculated based on unearned income such as interest and dividends as well as net earnings from self employment d Are not affected by wages the taxpayer earns as an employee

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Posted on Jul 11, 2024

QUESTION 11

	a.	Almost all individuals file tax returns using a calendar year accounting period.
	b.	Books and records may be kept on a different year-end basis than the year-end used for tax purposes.
	c.	An individual may request IRS approval to change to a fiscal year-end basis if certain conditions are met.
	d.	The choice to file on a fiscal year-end basis must be made with an initial tax return.

QUESTION 12

In 2019, which of the following children would have income taxed at trust and estate rates?

	a.	A 13-year-old child with salary income of $12,000
	b.	A 9-year-old child with salary income of $1,000
	c.	All of these
	d.	A nonstudent, 19-year-old child with net unearned income of $12,000
	e.	A 12-year-old child with net unearned income of $3,200

QUESTION 13

	a.	Tax exempt income
	b.	IRA distributions
	c.	Earned income
	d.	Gain on the sale of a principal residence

QUESTION 14

Which of the following itemized deductions may not be deducted in computing the individual alternative minimum tax?

	a.	Charitable deductions
	b.	All of these
	c.	State income taxes
	d.	Qualified home mortgage interest
	e.	Medical expenses (limited to 10 percent of AGI)

QUESTION 15

	a.	A partner's distributive share of partnership income
	b.	Dividend income
	c.	Capital gains
	d.	Interest income
	e.	None of these

QUESTION 16

Which of the common deductions below are allowed for both regular tax purposes and for AMT purposes in 2019?

	a.	The standard deduction
	b.	Personal and dependency exemptions
	c.	Mortgage interest from the acquisition of a residence with a loan balance less than $750,000
	d.	Miscellaneous itemized deductions taken on Schedule A
	e.	State income taxes, property taxes, and all other taxes deducted on Schedule A

QUESTION 17

Melody and Todd are married and have employee wages of $250,000 each in 2019. They have no other income. How much additional 0.9% Medicare tax will Melody and Todd have to pay or receive as a refund when they file their 2019 income tax return?

	a.	$900 will be refunded with their return.
	b.	$3,600 will be due with their return in addition to amounts withheld.
	c.	$1,350 will be due with their return in addition to amounts withheld.
	d.	$1,350 will be refunded with their return.

QUESTION 18

Mary sells to her father, Robert, her shares in AA Corp for $55,000. The shares cost Mary $80,000. How much loss may Mary claim from the sale?

QUESTION 19

Peter and Joan are married and Joan has self-employment income of $240,000. Peter is retired. How much additional 0.9% Medicare tax will Peter and Joan owe with their 2019 income tax return?

QUESTION 20

	a.	Consist of Medicare tax and Social Security tax.
	b.	Apply to taxpayers with less than $400 in self-employment earnings.
	c.	Are calculated based on unearned income such as interest and dividends as well as net earnings from self-employment.
	d.	Are not affected by wages the taxpayer earns as an employee.