Under the Tax Cuts and Jobs Act (TCJA), limitations apply to corporations and partnerships with corporate partners, whereby these taxpayers are prohibited from using the cash method of accounting for tax purposes unless their average annual gross receipts are what amount or less? A. $1 million OB. $5 mllion C. $10 million D. $25 million The Tax Cuts and Jobs Act (TCJA) provides that, effective for dispositions beginning on January 1, 2018, the definition of "capital asset" is amended to exclude all of the following except A. Patents OB. Stocks O C. Inventions D. Models or designs In 2016, Susan borrows from the U.S. Department of Education (ED) pursuant to the Direct Loan Program to finance her attendance at an institution of higher learning. In 2018, when the balance of her outstanding Direct loans is $20,000, Susan establishes as a defense against repayment within the meaning of the Higher Education Act of 1965 that the school misled her and that its actions would give rise to a cause of action against the school under applicable state law. ED cancels Susan's outstanding student loan and reports the discharge to the IRS on Form 1099-C Cancellation of Debt. Under the Tax Cuts and Jobs Act, Susan must include what amount of the cancellation of debt in her gross income on her income tax return? OB. $5,000 C. $10,000 D. $20,000 For 2018 through 2025, the Tax Cuts and Jobs Act (TCJA) revises the kiddie tax rules that tax a child's net unearned income. All of the following are true regarding the kiddie tax provisions except: OA. The kiddie tax can potentially apply until the year that a child turns age 24 B. The kiddi the brackets applicable to trusts and estates O D. The child's tax is unaffected by the tax situation of the child's parent or the e tax rules tax a portion of the child's unearned income at the parent's marginal tax rate if that rate is higher than the childs rate income of a child attributable to net unearned income (income from investments like dividends and interest) is taxed according to unearned income of any siblings Joseph and Rachel are married and earn $220,000 a year, which i theater, and $130,000 of net Rachel's on her Schedule C). In addition, the couple has a $150,000 portfolio, that produced $3,000 of qualified dividends and $2,000 of real estate (RE $132,000 (including will be eligible for a $24,000 standard deduction, reducing their $225,000 of income down to only $201,000. In addition, they will receive a qualified business income (QBI) deduction for what amount? come from Rachel's clothing store (which is simply a sole proprietorship business reported te investment trust (REIT) income in the past year. The couple's total income is $225,000, of which ness income and the REIT income) are "Qualified Business Income" In 2018, the couple A. $0 OB. $13,200 O C. $26,400 D. $52,800 Under the Tax Cuts and Jobs Act pass-through" entities will be taxed at their individual tax rates less a 20% deduction for qualifed business income (QBI). However, above certain threshold amounts, the deduction would be disallowed for businesses offering "professional services", such as which of the following? A. Law firms B. Doctor's offices OC. Investment offices D. All of the above files a joint return. His adjusted gross income after deductions in 2018 is $25o,000. re $6,000 in state and local taxes and $4,000 in personal property taxes. Based on Alejandro's alternative minimum taxable income (AMTI) of $260,000 he is entitled to subtract the what amount of the AMT exemption to arrive at his final taxable amount? The deductions that he needs to add back in for AMT purposes a A, so B. $54,700 C. $82,050 D. $109,400
