Filters
Question type
Study Flashcards

Stealth taxes are directed at lower income taxpayers.

A) True
B) False

Correct Answer

verifed

verified

Regarding the rules applicable to filing of income tax returns,which,if any,of the following is an incorrect statement:


A) Married persons who file joint returns cannot later (after the due date of the return) substitute separate returns.
B) Married persons who file separate returns can later (after the due date of the return) substitute a joint return.
C) The usual test as to when a taxpayer must file a return is based on the total of the following: personal exemption + basic standard deduction + both additional standard deductions.
D) Special filing requirement rules exist for taxpayers who are claimed as dependents of another.
E) None of these.

F) B) and C)
G) A) and B)

Correct Answer

verifed

verified

During 2014,Jackson had the following capital gains and losses: During 2014,Jackson had the following capital gains and losses: a.How much is Jackson's tax liability if he is in the 15% tax bracket? b.If his tax bracket is 33% (not 15%)? a.How much is Jackson's tax liability if he is in the 15% tax bracket? b.If his tax bracket is 33% (not 15%)?

Correct Answer

verifed

verified

b.$5,700.(33% × $3,0...

View Answer

Kirby is in the 15% tax bracket and had the following capital asset transactions during 2014: Long-term gan fram the sale of a cain collection $11,000 Lone-term gain from the sale of a land investment10,000Short-term gain from the sale of a stock investment 2,000Kirby’s tax cansequences fram these pains are as follows: \begin{array} { l } \text {Long-term gan fram the sale of a cain collection }&\$11,000\\ \text { Lone-term gain from the sale of a land investment}&10,000\\ \text {Short-term gain from the sale of a stock investment }&2,000\\\\ \text {Kirby's tax cansequences fram these pains are as follows: }&\\\end{array}


A) (5%×$10,000) +(15%×$13,000) ( 5 \% \times \$ 10,000 ) + ( 15 \% \times \$ 13,000 )
B) (15%×$13,000) +(28%×$11,000) ( 15 \% \times \$ 13,000 ) + ( 28 \% \times \$ 11,000 )
C) (0%×$10,000) +(15%×$13,000) ( 0 \% \times \$ 10,000 ) + ( 15 \% \times \$ 13,000 )
D) (15%×$23,000) ( 15 \% \times \$ 23,000 )
E)  None of these \text { None of these }

F) C) and E)
G) B) and D)

Correct Answer

verifed

verified

Match the statements that relate to each other.Note: Choice L may be used more than once. -Gain on collectibles (held more than one year)


A) Available to a 70-year-old father claimed as a dependent by his son.
B) Equal to tax liability divided by taxable income.
C) The highest income tax rate applicable to a taxpayer.
D) Not eligible for the standard deduction.
E) No one qualified taxpayer meets the support test.
F) Taxpayer's ex­husband does not qualify.
G) A dependent child (age 18) who has only unearned income.
H) Highest applicable rate is 39.6%.
I) Applicable rate could be as low as 0%.
J) Maximum rate is 28%.
K) Income from foreign sources is not subject to tax.
L) No correct match provided.

M) A) and J)
N) D) and I)

Correct Answer

verifed

verified

Since an abandoned spouse is treated as not married and has one or more dependent children,he or she qualifies for the standard deduction available to head of household.

A) True
B) False

Correct Answer

verifed

verified

All exclusions from gross income are reported on Form 1040.

A) True
B) False

Correct Answer

verifed

verified

Regarding dependency exemptions,classify each statement in one of the four categories: -A niece who lives with taxpayer,is 20 years old,earns $5,000,and is a full-time student.


A) Could be a qualifying child.
B) Could be a qualifying relative.
C) Could be either a qualifying child or a qualifying relative.
D) Could be neither a qualifying child nor a qualifying relative.

E) A) and D)
F) All of the above

Correct Answer

verifed

verified

Claude's deductions from AGI exceed the standard deduction allowed for 2014.Under these circumstances,Claude cannot claim the standard deduction.

A) True
B) False

Correct Answer

verifed

verified

Regarding head of household filing status,comment on the following: a.A taxpayer qualifies even though he maintains a household which he and the dependent do not share. b.A taxpayer does not qualify even though the person sharing the household is a dependent. c.The usual eventual filing status of a surviving spouse.

Correct Answer

verifed

verified

a.If the household is that of a dependen...

View Answer

Derek,age 46,is a surviving spouse.If he has itemized deductions of $12,700 for 2014,Derek should not claim the standard deduction.

A) True
B) False

Correct Answer

verifed

verified

Match the statements that relate to each other.Note: Choice L may be used more than once. -Surviving spouse


A) Not available to 65-year old taxpayer who itemizes.
B) Exception for U.S.citizenship or residency test (for dependency exemption purposes) .
C) Largest basic standard deduction available to a dependent who has no earned income.
D) Considered for dependency exemption purposes.
E) Qualifies for head of household filing status.
F) A child (age 15) who is a dependent and has only earned income.
G) Considered in applying gross income test (for dependency exemption purposes) .
H) Not considered in applying the gross income test (for dependency exemption purposes) .
I) Unmarried taxpayer who can use the same tax rates as married persons filing jointly.
J) Exception to the support test (for dependency exemption purposes) .
K) A child (age 16) who is a dependent and has only unearned income of $4,500.
L) No correct match provided.

M) G) and J)
N) A) and H)

Correct Answer

verifed

verified

Match the statements that relate to each other.Note: Choice L may be used more than once. -Multiple support agreement


A) Available to a 70-year-old father claimed as a dependent by his son.
B) Equal to tax liability divided by taxable income.
C) The highest income tax rate applicable to a taxpayer.
D) Not eligible for the standard deduction.
E) No one qualified taxpayer meets the support test.
F) Taxpayer's ex­husband does not qualify.
G) A dependent child (age 18) who has only unearned income.
H) Highest applicable rate is 39.6%.
I) Applicable rate could be as low as 0%.
J) Maximum rate is 28%.
K) Income from foreign sources is not subject to tax.
L) No correct match provided.

M) C) and E)
N) C) and I)

Correct Answer

verifed

verified

Surviving spouse filing status begins in the year in which the deceased spouse died.

A) True
B) False

Correct Answer

verifed

verified

Match the statements that relate to each other.Note: Choice L may be used more than once. -Resident of Canada or Mexico


A) Not available to 65-year old taxpayer who itemizes.
B) Exception for U.S.citizenship or residency test (for dependency exemption purposes) .
C) Largest basic standard deduction available to a dependent who has no earned income.
D) Considered for dependency exemption purposes.
E) Qualifies for head of household filing status.
F) A child (age 15) who is a dependent and has only earned income.
G) Considered in applying gross income test (for dependency exemption purposes) .
H) Not considered in applying the gross income test (for dependency exemption purposes) .
I) Unmarried taxpayer who can use the same tax rates as married persons filing jointly.
J) Exception to the support test (for dependency exemption purposes) .
K) A child (age 16) who is a dependent and has only unearned income of $4,500.
L) No correct match provided.

M) F) and G)
N) B) and G)

Correct Answer

verifed

verified

Kyle,whose wife died in December 2011,filed a joint tax return for 2011.He did not remarry,but has continued to maintain his home in which his two dependent children live.What is Kyle's filing status as to 2014?


A) Head of household
B) Surviving spouse
C) Single
D) Married filing separately
E) None of these

F) D) and E)
G) A) and B)

Correct Answer

verifed

verified

During 2014,Addison has the following gains and losses:  LTCG 110,000 LTCL 3,000 STCG 2,000 STCL 7,000\begin{array} { l r } \text { LTCG } & 110,000 \\\text { LTCL } & 3,000 \\\text { STCG } & 2,000 \\\text { STCL } & 7,000\end{array} a.How much is Addison's tax liability if she is in the 15% tax bracket? b.If her tax bracket is 33% (not 15%)?

Correct Answer

verifed

verified

a.$0.After the initial netting process,t...

View Answer

A child who is married cannot be subject to the kiddie tax.

A) True
B) False

Correct Answer

verifed

verified

An individual taxpayer uses a fiscal year March 1­February 28.The due date of this taxpayer's Federal income tax return is May 15 of each tax year.

A) True
B) False

Correct Answer

verifed

verified

Regarding dependency exemptions,classify each statement in one of the four categories: -A granddaughter,who lives with taxpayer,is 19 years old,earns $5,000,and is not a full-time student.


A) Could be a qualifying child.
B) Could be a qualifying relative.
C) Could be either a qualifying child or a qualifying relative.
D) Could be neither a qualifying child nor a qualifying relative.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

Showing 61 - 80 of 188

Related Exams

Exam 1

An Introduction to Taxation and Understanding the Federal Tax Law

195 Questions

Exam 2

Working With the Tax Law

86 Questions

Exam 4

Gross Income: Concepts and Inclusions

124 Questions

Exam 5

Gross Income: Exclusions

114 Questions

Exam 6

Deductions and Losses: in General

142 Questions

Exam 7

Deductions and Losses: Certain Business Expenses and Losses

120 Questions

Exam 8

Depreciation, cost Recovery, amortization, and Depletion

115 Questions

Exam 9

Deductions: Employee and Self-Employed-Related Expenses

177 Questions

Exam 10

Deductions and Losses: Certain Itemized Deductions

104 Questions

Exam 11

Investor Losses

110 Questions

Exam 12

Alternative Minimum Tax

119 Questions

Exam 13

Tax Credits and Payment Procedures

124 Questions

Exam 14

Property Transactions: Determination of Gain or Loss and Basis Considerations

142 Questions

Exam 15

Property Transactions: Nontaxable Exchanges

120 Questions

Exam 16

Property Transactions: Capital Gains and Losses

72 Questions

Exam 17

Property Transactions: 1231 and Recapture Provisions

70 Questions

Exam 18

Accounting Periods and Methods

108 Questions

Exam 19

Deferred Compensation

102 Questions

Exam 20

Corporations and Partnerships

207 Questions

Show Answer