Question 3 of 40.

What information do you need to compute basis for gain or loss of property received as a gift?

A. The donor's adjusted basis, including gift tax paid, on the date of the gift.

B. The fair market value of the property on the date of the gift.

C. Both A and B.

D. Neither A nor B.

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Question 4 of 40.

Rheal purchased a truck for his business. The purchase price was $28,500 for the truck, and he paid $120 for fees to title the truck. The manufacturer was offering a $2,000 rebate, which Rheal received.

What is his basis in the truck?

$26,500

$26,620

$28,500

$28,620

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Question 12 of 40.

Kristof is a self-employed photographer. On a photography tour of Arizona and New Mexico, he had meal expenses for three days. On the first day, he spent $65 on meals and $5 on incidentals; the second day, he spent $45 on meals and $3 on incidentals, and the third day, he spent $50 on meals and $5 on incidentals. He has all of his receipts.

How much can he deduct for his expenses from this trip?

$75.00 ($150 2).

$80.00 ($160 2).

$81.50 ($163 2).

$82.50 ($165 2).

Question 14 of 40.

Diane is a self-employed graphic designer with a qualified in-home office. The office is 350 square feet; the whole house is 2,250 square feet. Her mortgage is $1,500/month, but she doesn't have all her other expenses available. If she decides to use the simplified method, what would her home office deduction be?

$1,500

$1,650

$1,950

$2,801

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