The Tax Cuts and Jobs Act provides that for tax years beginning after December 31, 2017 until January 1, 2026, state, local, and foreign property taxes, and state and local sales taxes, are fully deductible only when paid or accrued in carrying on a trade or business or an activity relating to expenses for the production of income. Therefore, taxpayers may only fully claim deductions for state, local and foreign property taxes, and sales taxes that are presently deductible in computing income on all of the following schedules except: A. Schedule A OB. Schedule C O C. Schedule E D. Schedule F Amanda and Steve Smith are married and file jointly. During 2018 they paid state property taxes of $15,000 and state income taxes of $2,000. If they decided to itemize their deductions what amount of combined property and state income taxes can Amanda and Steve claim on their Schedule A Itemized Deductions? OA. $2,000 O B. $10,000 OC. $15,000 O D. $17,000 Sandra executes her divorce on January 18, 2018. She earns $120,000 and pays $30,000 alimony annually to her spouse who earns $25,000. Sandra will be required to pay taxes on what amount of her income? B. $30,000 OC, $90,000 OD. $120,000 Jenny James is a CPA who is representing Steve and Ashley O'Brien before the Wage and Investment Division of the Internal Revenue Service. The IRS is questioning Steve and Ashley on contributions that were listed on page 2 of their 2016 Form 1040. While reviewing the documentation provided by Steve and Ashley, Jenny discovers contributions that were made to a non-qualified organization. What is the appropriate action for Jenny to take? 0 A. Jenny must advise Steve and Ashley on how to keep the inaccuracy from being discovered by the IRS B. Jenny must notify the Internal Revenue Service that she is no longer representing Steve and Ashley by withdrawing her Form 2848 O C. Jenny must advise Steve and Ashley promptly of the inaccuracy and the consequences provided by the Internal Revenue Code and Regulations for such an inaccuracy D. Jenny must immediately advise the Internal Revenue Service examiner of the non-qualified contributions Which of the following statements is correct with respect to a client's request for records of the client that are necessary for the client to comply with his or her Federal tax obligations? OA. The practitioner may never return records of the dient to the client even if the dient requests prompt return of the records O B. The existence of a dispute over fees always relieves the practitioner of his or her responsibility to return records of the dient to the dient OC. The practitioner must, at the request of the dient, promptly return the records of the dlient to the dlient unless applicable state law provides otherwise D. The practitioner must, at the request of the dient, return the records of the dient to the ci ent within three months of receiving the request Edward and Julia are married and have two children under age 18. No family member has minimum essential coverage for any month during 2017, and no family member qualifies for an exemption. For 2017, their household income is $73,300 and their tax return filing threshold amount is $28,900. Assuming the annual national average premium for bronze level coverage for 2017 is $6,092, Edward and Julia's shared responsibility payment for 2017 is what amount? B. $695 C. $1,110 OD. $2,085 In 2017, Jake receives a qualified mortgage credit certificate (MCC) from California. This year, his regular tax liability is $1,100, he owes no alternative minimum tax, and his Mortgage Interest Credit is $1,700. Additionally, Jake claims no othe credits. What amount of Jake's unused Mortgage Interest Credit for this year can he carry forward to the next 3 years or until used, whichever comes first? A. $0 OB. $600 O C. $1,100 D. $1,700 In 2017, Jason had two employers during the year. Both employers withheld Social Security tax from his wages in the amounts of $4,035.05 and $4,200.35. What amount can Jason claim as a credit against his income tax when he files his income tax return? OA. $0 B. $349 C. $1,186 D$8,235 In 2017, Miranda and Tony adopted a child, not determined to have special needs, in the current year. During the year their qualified adoption expenses were $17,000 and they had a modified adjusted gross income (MAGI) of $283,500. What is the amount of Miranda and Tony's Adoption Credit? O B. $6,700 C.$13,570 OD. $26,800 Mary is a single taxpayer and has modified adjusted gross income of $80,000, what is the maximum Adoption Credit she can claim on her 2017 income tax return? OA. $12,650 per eligible child B. $13,190 per eligible child C. $13,570 per eligible child D. $14,500 per eligible child