Questions from General Taxation

Q: In 2017, Joseph and Patricia Jefferson redeemed $8,000

In 2017, Joseph and Patricia Jefferson redeemed $8,000 of Series EE U.S. savings bonds (principal of $5,500 and interest of $2,500), the proceeds from which were used to pay for qualified higher educa...

Q: Daniel and Alexis, both 28, are interested in saving for

Daniel and Alexis, both 28, are interested in saving for the college education of their twin daughters Alie and Amber. They decide to purchase some Series EE U.S. savings bonds because they know that...

Q: Determine the amount of tax liability in the following situations. In

Determine the amount of tax liability in the following situations. In all cases, the taxpayer is using the filing status of married filing jointly. a. Taxable income of $62,449 that includes a quali...

Q: Original issue discount (OID) is deemed to be zero if

Original issue discount (OID) is deemed to be zero if it is less than ________ of the maturity value, multiplied by the number of complete years to maturity. a. 0.25%. b. 5%. c. 25%. d. 15%.

Q: An individual with an OID instrument must annually report a portion of

An individual with an OID instrument must annually report a portion of the OID as a. Dividend income. b. Pension income. c. Capital gain income. d. Interest income.

Q: The amount of savings bond interest exempt from tax is limited when

The amount of savings bond interest exempt from tax is limited when an individual is single and his or her AGI reaches a. $117,250. b. $77,550. c. $78,150. d. $76,000.

Q: The majority of itemized deductions are: a. Business

The majority of itemized deductions are: a. Business expenses. b. Tax credits. c. Personal living expenses. d. None of the above.

Q: Generally, a taxpayer may deduct the cost of medical expenses for

Generally, a taxpayer may deduct the cost of medical expenses for which of the following? a. Marriage counseling. b. Health club dues. c. Doctor-prescribed birth control pills. d. Trips for g...

Q: The threshold amount for the deductibility of allowable medical expenses is:

The threshold amount for the deductibility of allowable medical expenses is: a. 7.5% of AGI. b. 10% of AGI. c. 10% of taxable income. d. 15% of taxable income.

Q: During 2017, Raul incurred and paid the following expenses:

During 2017, Raul incurred and paid the following expenses: Prescription drugs…………………………………………………………$ 470 Vitamins and over-the-counter cold remedies…………………..130 Doctors and dentist visits……………………………...