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Posted on Jul 17, 2024

QUESTION 14 You have clients, named Liam (who was born in Sweden) and Ella. They have six kids, and the list is as follows: Name

QUESTION 14

You have clients, named Liam (who was born in Sweden) and Ella. They have six kids, and the list is as follows:

Name	Age	Location/Circumstances
Jonathan	22	Currently in college and just started Law school (finished high school at 17) at Georgetown University.
Thor	19	Twin of Kristina. Just started an acting program in New York at public university.
Kristina	19	Twin of Thor. Just started college at CalTech and majoring in Chemistry.
Astrid	16	Junior in high school in Virginia
Maja	14	Middle School Student
Erik	8	Elementary School Student

Assuming they have the correct expenses allowed, how many children will qualify for the Dependent Care Credit?

	a.	2
	b.	3
	c.	5
	d.	4

5 points

QUESTION 15

You have clients, named Liam (who was born in Sweden) and Ella. They have six kids, and the list is as follows:

Name	Age	Location/Circumstances
Jonathan	22	Currently in college and just started Law school (finished high school at 17) at Georgetown University.
Thor	19	Twin of Kristina. Just started an acting program in New York at public university.
Kristina	19	Twin of Thor. Just started college at CalTech and majoring in Chemistry.
Astrid	16	Junior in high school in Virginia
Maja	14	Middle School Student
Erik	8	Elementary School Student

How many children above qualify for the child tax credit (for $2000; Assume all children are dependents for this question only)?

	a.	3
	b.	2
	c.	6
	d.	5

5 points

QUESTION 16

You have clients, named Liam (who was born in Sweden) and Ella. They have six kids, and the list is as follows:

Name	Age	Location/Circumstances
Jonathan	22	Currently in college and just started Law school (finished high school at 17) at Georgetown University.
Thor	19	Twin of Kristina. Just started an acting program in New York at public university.
Kristina	19	Twin of Thor. Just started college at CalTech and majoring in Chemistry.
Astrid	16	Junior in high school in Virginia
Maja	14	Middle School Student
Erik	8	Elementary School Student

How many children will qualify for the American Opportunities Tax Credit? (Assume all children are dependents for this question only)

	a.	1
	b.	4
	c.	3
	d.	2

5 points

QUESTION 17

Jack and Jessie have been married for a couple of years, and they have asked you for some advice. They have just adopted a child this year, and they are moving from their smaller home to a larger home as a result. However, they love their first home and dont want to part with it, so they are considering renting it out.

What form would you report the income and expenses from their activity?

a.
Schedule D

b.
Form 6251

c.
Schedule E

d.
Form 8938

5 points

QUESTION 18

Jack and Jessie have been married for a couple of years, and they have asked you for some advice. They have just adopted a child this year, and they are moving from their smaller home to a larger home as a result. However, they love their first home and dont want to part with it, so they are considering renting it out.

Which of the following is not an ordinary and necessary expense in the area of property rental?

	a.	Traveling to Reno for a convention of home renters to better learn how to maintain their rental of their home
	b.	Management charges for someone to manage the property
	c.	Traveling to the home (located in Las Vegas) for inspections
	d.	Homeowner association fees

QUESTION 11

Dorthey is a retired widow and former UK citizen who lives on the fruits of her and her deceased husbands (James) labor. Her husband died 4 years ago, after they were married for 40 years, they had no prior spouses before their marriage. She receives income from the following sources:
- Survivors benefit from James pension: $25,000/year (Ignore any contributions made to the pension)
- Survivors benefit from James social security: $15,000/year
- Traditional IRA distribution: $30,000/year
- Interest from City of Roanoke bonds: $10,000
- Interest from City of Bath Bonds: $10,000, of which $2000 is withheld from to pay taxes in the UK.
What is the gross income reported on the Form 1040 for Income reported in 2019?

a.
$80,000

b.
$77,750

c.
$87,750

d.
$90,000

5 points

QUESTION 12

Dorthey is a retired widow and former UK citizen who lives on the fruits of her and her deceased husbands (James) labor. Her husband died 4 years ago, after they were married for 40 years, they had no prior spouses before their marriage. She receives income from the following sources:
- Survivors benefit from James pension: $25,000/year (Ignore any contributions made to the pension)
- Survivors benefit from James social security: $15,000/year
- Traditional IRA distribution: $30,000/year
- Interest from City of Roanoke bonds: $10,000
- Interest from City of Bath Bonds: $10,000, of which $2000 is withheld from to pay taxes in the UK.
What is the taxable income reported on the tax return?

a.
$90,000

b.
$87,750

c.
$77,750

d.
$80,000