Questions from General Taxation


Q: Otto and Monica are married taxpayers who file a joint tax return

Otto and Monica are married taxpayers who file a joint tax return. For the current tax year, they have AGI of $80,300. They have excess depreciation on real estate of $67,500, which must be added back...

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Q: List two common deductions which are allowed for regular tax purposes but

List two common deductions which are allowed for regular tax purposes but are not deductible for AMT purposes.

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Q: Although the AMT is meant to prevent high-income taxpayers from

Although the AMT is meant to prevent high-income taxpayers from using tax shelters to avoid paying tax, why might married taxpayers with several children living in a state with high state income taxe...

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Q: What are the two tax rates which are used to calculate AMT

What are the two tax rates which are used to calculate AMT, ignoring the special treatment of dividends and capital gains?

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Q: List the 7 rules that all taxpayers must meet in order to

List the 7 rules that all taxpayers must meet in order to claim the EIC.

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Q: Show the simplified formula for calculating AMT. Do not show tax

Show the simplified formula for calculating AMT. Do not show tax rates or an exemption amount.

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Q: Explain the purpose of the provision in the tax law that taxes

Explain the purpose of the provision in the tax law that taxes unearned income of certain minor children at their parents’ tax rates.

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Q: Brian and Kim have a 12-year-old child,

Brian and Kim have a 12-year-old child, Stan. For 2016, Brian and Kim have taxable income of $52,000, and Stan has nonqualifying dividend income of $4,500 and investment expenses of $250. No election...

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Q: Nikkie and Jean have two children, Richard (age 4)

Nikkie and Jean have two children, Richard (age 4) and Roberta (age 3). For purposes of the tax on a child’s unearned income, Richard has net unearned income of $6,000 and Roberta has net unearned inc...

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Q: Explain the two different ways that the tax on unearned income of

Explain the two different ways that the tax on unearned income of minor children, or “kiddie tax,” can be reported.

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