Questions from General Taxation

Q: Generous Corporation provides a SIMPLE plan for its employees. Under the

Generous Corporation provides a SIMPLE plan for its employees. Under the plan, employees can contribute up to 6% of their salary and Generous Corporation will match each employee’s contribution up to...

Q: Trade or business expenses are treated as a. A

Trade or business expenses are treated as a. A deduction for AGI. b. An itemized deduction if not reimbursed. c. A deduction from AGI. d. A deduction from AGI limited to the amount in excess of 2% of...

Q: Which of the following is not a “trade or business”

Which of the following is not a “trade or business” expense? a. Interest on investment indebtedness. b. Property taxes on business equipment. c. Depreciation on business property. d. Cost of goods so...

Q: Atlas, a financial consultant, had the following income and expenses

Atlas, a financial consultant, had the following income and expenses in his business: Fee Income $235,000  Expenses:    Rent Expense  18,000   Penalties assessed by the SEC  2,5...

Q: Mandy, a CPA, flew from Raleigh to Seattle to attend

Mandy, a CPA, flew from Raleigh to Seattle to attend an accounting conference that lasted four days. Then she took three days of vacation to go sightseeing. Mandy’s expenses for the trip are as foll...

Q: On May 5, 2012, Jill purchased equipment for $40

On May 5, 2012, Jill purchased equipment for $40,000 to be used in her business. She did not elect to expense the equipment under Section 179 or bonus depreciation. On January 1, 2017, she sells the...

Q: On April 15, 2015, Andy purchased some furniture and fixtures

On April 15, 2015, Andy purchased some furniture and fixtures (7-year property) for $10,000 to be used in his business. He did not elect to expense the equipment under §179 or bonus depreciation. On...

Q: Lawrence purchased an apartment building on February 10, 2017, for

Lawrence purchased an apartment building on February 10, 2017, for $330,000, $30,000 of which was for the land. What is the cost recovery deduction for 2017? a. $0. b. $ 6,741. c. $ 9,546. d. $10...

Q: Roy purchased an office building on March 30, 2014, for

Roy purchased an office building on March 30, 2014, for $250,000. $25,000 of which was for the land. On July 30, 2017, he sold the office building. What is the cost recovery deduction for 2017? a. $...

Q: On June 30, 2017, Ken purchased an apartment building for

On June 30, 2017, Ken purchased an apartment building for $500,000. Determine the cost recovery deduction for 2017: a. $4,925. b. $5,335. c. $6,955. d. $9,850.