Xamination Nathe: all questions and problems appearing on this examinatien under rules goveming income taxation. Unless instructed otherwise, assume the relevant year to 21. Ignore any rule changes enacted in response to Covid-19. on Number One rue-false statements appear below. You must angwer all of them. for enth statement swer, insert "I" ot "F" in the approptiate space on the separateandwar sheri. lessor (landlord) upon termination of the lease when the premitsare rafurned fo the lessot. Cash charitable contributions of less than $250 cancily be ded acted if the taxpayer has a cancelled check evidencing the contrit ution A taxpayer whose spouse died during ary of the four years prowed futtie year in question and who has riot remarried may file his/her federal income tax refurn af a survivine spouse if the individuas maintains a household with a dependant thitd ar stepehild: living in it. During the same year; spouses John and Mary Thorus dived simultapeousy in an automobile accident. Federal income tax rules will phahibit the f re of a joint Form 1040 for them for the year-of death. As long as an individual's empleyer has paid 100% of the total cuntriaueion coit to fund an employee's pension, all pension plan payments fecesed by the retired: employee must be included in hisfher gross income. Unreimbursed employee business expenses may be deducted onfy by an inchidual who itemizes kis/her deductions. A single taxpayer with gross income lower than hit/her aralable standard deduction amount will never be required to file a form 10 bo indiwiduat incoene tax return. If proceeds of a life insurance polisy are recelved via marrender of the pelicy and the cost of the policy exceeds the proceeds amount, the owner of the policy may claim a deduction for the amount of the loss: investinent interest expense may be deducted only to the exsent of net imyestanent income. excess interest that cannot be deducted because of thas finaidion may be carried over incefinitely to future years until deducted. 0. Under the basic MACFS coeventiory a machine diposed of oung the veat a deened to: have been disposed of on the last day of the year of actual doposition 21. Ueder the "qualufying relative" tent, a chile wise prowides evee 1/2 of tigh here on n support for the year in question may not be closified ar a despisent ander a multiple suppoit agreemint. Thirty true-false statements appear below. You must answer all of them. For each stateme you answer, insert " T ? or " F " in the appropriate space on the separate answer sheet. 1. For income tax purposes, improvements made by a lessee (tenant) are income to the lessor (landlord) upon termination of the lease when the premises are returned to the lessor. 2. Cash charitable contributions of less than $250 can only be deducted if the taxpayer has a cancelled check evidencing the contribution. 3. A taxpayer whose spouse died during any of the four years preceding the year in questio and who has not remarried may file his/her federal income tax return as a surviving spouse if the individual maintains a household with a dependent child or stepchild living in it. 4. During the same year, spouses John and Mary Thomas died simultaneously in an automobile accident. Federal income tax rules will prohibit the filing of a joint Form 1040 for them for the year of death. 5. As long as an individual's employer has paid 100% of the total contribution cost to fund an employee's pension, all pension plan payments received by the retired employee must be included in his/her gross income. 6. Unreimbursed employee business expenses may be deducted only by an individual who itemizes his/her deductions. 7. A single taxpayer with gross income lower than his/her available standard deduction amount will never be required to file a Form 1040 individual income tax return.. 8. If proceeds of a life insurance policy are received via surrender of the policy and the cost of the policy exceeds the proceeds amount, the owner of the policy may claim a deduction for the amount of the loss. 9. Investment interest expense may be deducted only to the extent of net investment income; excess interest that cannot be deducted because of this limitation may be carried over indefinitely to future years until deducted. 10. Under the basic MACRS convention, a machine disposed of during the year is deemed to have been disposed of on the last day of the year of actual disposition 11. Under the "qualifying relative" test, a child who provides over 1/2 of his/her own support for the year in question may not be classified as a dependent under a multiple support agreement. 12. A nonbusiness bad debt is deductible only if the debt is completely worthless. 13. Individual income tax laws were enacted by both New York and Virginia while they were colonies of England. 14. If an individual receives a distribution of taxable stock rights, the basis of the rights will be their market value at the date of distribution. 15. If the House of Representatives and the Senate each pass a revenue bill, but the two versions differ in a substantive way, a Joint Conference Committee Committee considers the two versions and arrives at a compromise bill, which is then sent to each of the houses for a final vote. 16. A deduction for a qualifying IRA contribution is allowable on Form 1040 only if the individual is itemizing his/her deductions. 17. A nonbusiness bad debt, when recognized, is always classified as a short-term capital loss for federal income tax purposes. 18. An individual who is a resident of Canada, but who is neither a citizen nor a national of th United States, may not qualify as a dependent of a United States citizen. 19. For purposes of qualifying as head of household, the costs of maintaining a household do not include the cost of medical care for the applicable dependent. 20. For federal income tax purposes, income will be taxed to the individual who earned it, unless the individual assigns the income to another party. 21. A small cash stipend, $25 for example, given by an employer to an employee at Christmas need not be reported as gross income by the recipient employee. 22. Dividends in excess of the cumulative amount of net premiums paid on a fully paid up life insurance policy generally are included in gross income of the policy holder.. 23. To be classified as a "qualifying child, an individual must have the same place of abode as the taxpayer parent for the full tax year in question. 24. The constructive receipt doctrine only applies to accrual basis taxpayers. 25. The additional standard deduction for age will be allowed for an individual who dies before attaining age of 65 if the individual would have been age 65 before the close of the year of death. 26. A cash basis taxpayer who writes off a $400 account receivable as a bad debt may claim a deduction on Form 1040 in the year of the write-off. 27. Under the "qualifying relative" test, a taxpayer is allowed a dependency deduction for each otherwise qualifying dependent whose gross income for the year is less than the exemption amount. 28. An IRC 179 election is available for purchases of new or used otherwise quatifying property. 29. The Internal Revenue Service operates under the Ombudsman Act, under which relief is provided to taxpayers who encounter procedural problems when dealing with IRS personnel. 30. The Fifteenth Amendment to the U.S. Constitution, addressing the direct tax controversy. was proposed by Congress in 1909 and ratified in 1913. Xamination Nathe: all questions and problems appearing on this examinatien under rules goveming income taxation. Unless instructed otherwise, assume the relevant year to 21. Ignore any rule changes enacted in response to Covid-19. on Number One rue-false statements appear below. You must angwer all of them. for enth statement swer, insert "I" ot "F" in the approptiate space on the separateandwar sheri. lessor (landlord) upon termination of the lease when the premitsare rafurned fo the lessot. Cash charitable contributions of less than $250 cancily be ded acted if the taxpayer has a cancelled check evidencing the contrit ution A taxpayer whose spouse died during ary of the four years prowed futtie year in question and who has riot remarried may file his/her federal income tax refurn af a survivine spouse if the individuas maintains a household with a dependant thitd ar stepehild: living in it. During the same year; spouses John and Mary Thorus dived simultapeousy in an automobile accident. Federal income tax rules will phahibit the f re of a joint Form 1040 for them for the year-of death. As long as an individual's empleyer has paid 100% of the total cuntriaueion coit to fund an employee's pension, all pension plan payments fecesed by the retired: employee must be included in hisfher gross income. Unreimbursed employee business expenses may be deducted onfy by an inchidual who itemizes kis/her deductions. A single taxpayer with gross income lower than hit/her aralable standard deduction amount will never be required to file a form 10 bo indiwiduat incoene tax return. If proceeds of a life insurance polisy are recelved via marrender of the pelicy and the cost of the policy exceeds the proceeds amount, the owner of the policy may claim a deduction for the amount of the loss: investinent interest expense may be deducted only to the exsent of net imyestanent income. excess interest that cannot be deducted because of thas finaidion may be carried over incefinitely to future years until deducted. 0. Under the basic MACFS coeventiory a machine diposed of oung the veat a deened to: have been disposed of on the last day of the year of actual doposition 21. Ueder the "qualufying relative" tent, a chile wise prowides evee 1/2 of tigh here on n support for the year in question may not be closified ar a despisent ander a multiple suppoit agreemint. Thirty true-false statements appear below. You must answer all of them. For each stateme you answer, insert " T ? or " F " in the appropriate space on the separate answer sheet. 1. For income tax purposes, improvements made by a lessee (tenant) are income to the lessor (landlord) upon termination of the lease when the premises are returned to the lessor. 2. Cash charitable contributions of less than $250 can only be deducted if the taxpayer has a cancelled check evidencing the contribution. 3. A taxpayer whose spouse died during any of the four years preceding the year in questio and who has not remarried may file his/her federal income tax return as a surviving spouse if the individual maintains a household with a dependent child or stepchild living in it. 4. During the same year, spouses John and Mary Thomas died simultaneously in an automobile accident. Federal income tax rules will prohibit the filing of a joint Form 1040 for them for the year of death. 5. As long as an individual's employer has paid 100% of the total contribution cost to fund an employee's pension, all pension plan payments received by the retired employee must be included in his/her gross income. 6. Unreimbursed employee business expenses may be deducted only by an individual who itemizes his/her deductions. 7. A single taxpayer with gross income lower than his/her available standard deduction amount will never be required to file a Form 1040 individual income tax return.. 8. If proceeds of a life insurance policy are received via surrender of the policy and the cost of the policy exceeds the proceeds amount, the owner of the policy may claim a deduction for the amount of the loss. 9. Investment interest expense may be deducted only to the extent of net investment income; excess interest that cannot be deducted because of this limitation may be carried over indefinitely to future years until deducted. 10. Under the basic MACRS convention, a machine disposed of during the year is deemed to have been disposed of on the last day of the year of actual disposition 11. Under the "qualifying relative" test, a child who provides over 1/2 of his/her own support for the year in question may not be classified as a dependent under a multiple support agreement. 12. A nonbusiness bad debt is deductible only if the debt is completely worthless. 13. Individual income tax laws were enacted by both New York and Virginia while they were colonies of England. 14. If an individual receives a distribution of taxable stock rights, the basis of the rights will be their market value at the date of distribution. 15. If the House of Representatives and the Senate each pass a revenue bill, but the two versions differ in a substantive way, a Joint Conference Committee Committee considers the two versions and arrives at a compromise bill, which is then sent to each of the houses for a final vote. 16. A deduction for a qualifying IRA contribution is allowable on Form 1040 only if the individual is itemizing his/her deductions. 17. A nonbusiness bad debt, when recognized, is always classified as a short-term capital loss for federal income tax purposes. 18. An individual who is a resident of Canada, but who is neither a citizen nor a national of th United States, may not qualify as a dependent of a United States citizen. 19. For purposes of qualifying as head of household, the costs of maintaining a household do not include the cost of medical care for the applicable dependent. 20. For federal income tax purposes, income will be taxed to the individual who earned it, unless the individual assigns the income to another party. 21. A small cash stipend, $25 for example, given by an employer to an employee at Christmas need not be reported as gross income by the recipient employee. 22. Dividends in excess of the cumulative amount of net premiums paid on a fully paid up life insurance policy generally are included in gross income of the policy holder.. 23. To be classified as a "qualifying child, an individual must have the same place of abode as the taxpayer parent for the full tax year in question. 24. The constructive receipt doctrine only applies to accrual basis taxpayers. 25. The additional standard deduction for age will be allowed for an individual who dies before attaining age of 65 if the individual would have been age 65 before the close of the year of death. 26. A cash basis taxpayer who writes off a $400 account receivable as a bad debt may claim a deduction on Form 1040 in the year of the write-off. 27. Under the "qualifying relative" test, a taxpayer is allowed a dependency deduction for each otherwise qualifying dependent whose gross income for the year is less than the exemption amount. 28. An IRC 179 election is available for purchases of new or used otherwise quatifying property. 29. The Internal Revenue Service operates under the Ombudsman Act, under which relief is provided to taxpayers who encounter procedural problems when dealing with IRS personnel. 30. The Fifteenth Amendment to the U.S. Constitution, addressing the direct tax controversy. was proposed by Congress in 1909 and ratified in 1913