Questions from General Taxation

Q: Concerning the business interest expense deduction, which of the following statements

Concerning the business interest expense deduction, which of the following statements is true? a. Disallowed interest expense can be carried forward indefinitely. b. The interest expense deduction ca...

Q: Which of the following items increase basis for a stockholder of a

Which of the following items increase basis for a stockholder of a Subchapter S corporation? a. Capital contributions. b. Charitable contributions. c. Net losses. d. Distributions from the corporatio...

Q: Which of the following statements is incorrect? a.

Which of the following statements is incorrect? a. An S corporation can own stock of a C corporation. b. A C corporation can own stock of an S corporation. c. An S corporation can be a partner in a p...

Q: Which of the following statements concerning the shareholders of a Subchapter S

Which of the following statements concerning the shareholders of a Subchapter S corporation is correct? a. Shareholders are taxed on their proportionate share of earnings that are distributed. b. Sha...

Q: Chen received a $10,000 dividend from a Subchapter C

Chen received a $10,000 dividend from a Subchapter C corporation. He also owns a 50% interest in a Subchapter S corporation that reported $100,000 of taxable income. He received a distribution of $20,...

Q: In 2016 Grant purchased land for $103,000 for use

In 2016 Grant purchased land for $103,000 for use in his business. He sold it in 2019 for $114,000. What are the amount and type of gain on this sale before netting any other gains and/or losses? a. $...

Q: Which of the following increases a taxpayer’s at-risk amount?

Which of the following increases a taxpayer’s at-risk amount? a. Cash distributions. b. Property distributions. c. Increased share of liabilities. d. Loss items.

Q: Jamison is a single dad with two dependent children: Zoey,

Jamison is a single dad with two dependent children: Zoey, age 7, and Conner, age 3. He has an AGI of $39,000 and paid $4,300 to a qualified day care center for the two children. What amount can Jamis...

Q: During 2019, Raul incurred and paid the following expenses:

During 2019, Raul incurred and paid the following expenses: Prescription drugs ……………………………………………………….……… $ 470 Vitamins and over-the-counter cold remedies …………………………… 130 Doctor and dentist visits ……...

Q: Allie and Buddy are married, file a joint return, and

Allie and Buddy are married, file a joint return, and have one son, Zack, age 5. Buddy has earned income of $47,000, and Allie was a full-time student for eight months (with no income). They paid a qu...