Questions from General Taxation

Q: Colin is a high school chemistry teacher who owns some land in

Colin is a high school chemistry teacher who owns some land in Oklahoma that produces oil from its small oil reserve. On what schedule should Colin report the royalty income he receives? a. Schedule...

Q: Sally is a full-time author and recently published her third

Sally is a full-time author and recently published her third mystery novel. The royalty income she receives from the publisher this year should be reported on what schedule? a. Schedule E. b. Sched...

Q: What is the maximum amount of passive losses from a rental activity

What is the maximum amount of passive losses from a rental activity that a taxpayer can deduct against active and portfolio income per year (assuming no passive loss limitation due to AGI or personal...

Q: Which of the following entity (ies) is (are)

Which of the following entity (ies) is (are) considered flow-through? a. Partnership. b. S Corporation. c. LLC. d. All are considered flow-through entities.

Q: From which of the following flow-through entities is ordinary income

From which of the following flow-through entities is ordinary income (K-1) considered self-employment income? a. Partnership. b. S Corporation. c. Trusts. d. Estates.

Q: Jermaine owns a rental home in Lake Tahoe and traveled there from

Jermaine owns a rental home in Lake Tahoe and traveled there from his home in San Francisco for maintenance and repairs three times this year. The round trip from San Francisco to Lake Tahoe is appro...

Q: Dennis receives $11,100 during the current tax year from

Dennis receives $11,100 during the current tax year from Blanca for some office space in Anaheim, California. The rent covers eight months, from August 1 of the current year to March 31 of the follow...

Q: Ginny owns a house in northern Wisconsin that she rents for $

Ginny owns a house in northern Wisconsin that she rents for $1,600 per month. Ginny does not use the property personally. While she was in Europe for Christmas, the water heater on the property fail...

Q: James owns a home in Lake Tahoe, Nevada, that he

James owns a home in Lake Tahoe, Nevada, that he rented for $1,600 for two weeks during the summer. He lived there for a total of 120 days, and the rest of the year the house was vacant. The expenses...

Q: Assume the same facts as Question 22, except that James rented

Assume the same facts as Question 22, except that James rented the Lake Tahoe home for 40 days for $4,600. What is his net income or loss from the rental of his home (without considering the passive l...