Questions from Individual Taxation

Q: Ken (birthdate July 1, 1988) and Amy (birthdate

Ken (birthdate July 1, 1988) and Amy (birthdate July 4, 1990) Booth have brought you the following information regarding their income, expenses, and withholding for the year. They are unsure which of...

Q: 1. Which of the following may not be treated as a

1. Which of the following may not be treated as a partnership for tax purposes? a. Arnold and Willis operate a restaurant. b. Thelma and Louise establish an LLP to operate an accounting practice. c. L...

Q: 11. When calculating ordinary income, partnerships are not allowed which

11. When calculating ordinary income, partnerships are not allowed which of the following deductions? a. Miscellaneous expenses b. Qualified business income deduction c. Depreciation d. Cost of good...

Q: 1. Ironwood Corporation has ordinary taxable income of $65,

1. Ironwood Corporation has ordinary taxable income of $65,000 in 2019, and a short-term capital loss of $15,000. What is the corporation’s tax liability for 2019? a. $7,500 b. $5,250 c. $10,500 d. $1...

Q: 11. Mansfield Incorporated, a calendar year corporation, is expecting

11. Mansfield Incorporated, a calendar year corporation, is expecting to have a current year tax liability of $100,000. Which best describes the tax payments Mansfield should make to avoid penalty? a....

Q: 2. The IRS does not have the authority to:

2. The IRS does not have the authority to: a. Examine a taxpayer’s books and records b. Summon taxpayers to make them appear before the IRS c. Summon third parties for taxpayer records d. Place a lien...

Q: 11. Which of the following does not result in a minimum

11. Which of the following does not result in a minimum $50 fine for an income tax preparer? a. Failure to provide a tax preparer identification number b. Cashing a refund check for a customer c. Fail...

Q: 16. Harry’s wife Lila passes away in January of the current

16. Harry’s wife Lila passes away in January of the current year. Fortunately, Lila had a $1 million life insurance policy. Harry elects to receive all $1 million in the current year and spends $200,0...

Q: 26. In 2019, Amy receives $8,000 (

26. In 2019, Amy receives $8,000 (of which $3,000 is earnings) from a qualified tuition program. She does not use the funds to pay for tuition or other qualified higher education expenses. What amount...

Q: 7. Heather drives her minivan 953 miles for business purposes in

7. Heather drives her minivan 953 miles for business purposes in 2019. She elects to use the standard mileage rate for her auto expense deduction. Her deduction will be a. $510 b. $515 c. $519 d. $553...