H&R BLOCK INCOME TAX COURSE EXAM ACTUAL
QUESTIONS AND ANSWERS - LATEST AND
COMPLETE UPDATE WITH VERIFIED SOLUTIONS –
ASSURED PASS WITH INSTANT DOWNLOAD PDF.
Darren and Misty were married for 5 years before Darren's passing in 2010. Misty
paid all of the cost of maintaining a home for herself and her dependent son,
Vincent. Vincent moved out of the home in November of 2011. Misty was eligible
to file a joint return for 2010. Misty has not remarried.
Can Misty file qualifying widow(er)? - ✔✔✔ - ANSWER: > No
Connor and Jillian were married for 15 years before Connor's death in 2010. Jillian
paid over 50% of the cost of maintaining a home for herself and her dependent
stepson, Keith. Keith lived with Jillian for all of 2011. Jillian was eligible to file a
joint return for 2010. Jillian has not remarried. Can Jillian file qualifying
widow(er)? - ✔✔✔ - ANSWER: > Yes
Julie Ann (72) was claimed by both her son, Mark, and her other son, Samuel.
Mark and Samuel each provided 40% of Julie Ann's support. The remaining 20%
was paid by Julie Ann's niece, Kathy. Who can claim Julie Ann's dependency
exemption? - ✔✔✔ - ANSWER: > No One
Gina (8) was claimed by her mother, Debra, and her grandmother, Myrna. Who
can claim Gina's dependency exemption? - ✔✔✔ - ANSWER: > Debra
,Darrell (12) was claimed by his aunt, Felicia, and his older brother, Gerald. Darrell
lived with both Felicia and Gerald for 4 months. He lived with Felicia for 5 months
separately. He lived with Gerald for 3 months separately. Felicia's AGI was
$29,290. Gerald's AGI was $31,205. Who can claim Darrell's dependency
exemption? - ✔✔✔ - ANSWER: > Gerald
Adjusted Basis - ✔✔✔ - ANSWER: > Usually the original cost plus the cost of
capital improvements and the cost of restoring the property, minus any
reimbursement or deduction of previous casualty losses and depreciation taken.
How is the amount of casualty loss determined for real property? - ✔✔✔ -
ANSWER: > Loss is determined for the entire property as a single item.
How is the amount of casualty loss determined for personal property? - ✔✔✔ -
ANSWER: > Loss is determined separately for each item.
When do you deduct a loss? - ✔✔✔ - ANSWER: > Loss is deducted only for the
year in which the casualty occurred or the theft was discovered.
AGI Limitation of Most Miscellaneous Itemized Deductions - ✔✔✔ - ANSWER:
> 2%
,Form 2106-EZ - ✔✔✔ - ANSWER: > Unreimbursed Employee Business
Expenses
Two Methods for Computing Allowable Transportation
Expenses - ✔✔✔ - ANSWER: > The Regular Method
The Optional Method
What must a taxpayer do to qualify to use the optional method with the standard
mileage rate? - ✔✔✔ - ANSWER: > Own or lease the vehicle; not use the vehicle
for hire; not have more than four vehicles in simultaneous business use at any time
during the year; use the optional method the first year the car or truck is placed in
service.
When are education expenses not deductible? - ✔✔✔ - ANSWER: > If the
education is required to meet the minimum educational requirements in effect
when the taxpayer first obtained the job or if it qualifies him for a new trade or
business.
Are tax preparation fees deductible? - ✔✔✔ - ANSWER: > Yes
What line of Schedule A are investment expenses included on?
, - ✔✔✔ - ANSWER: > Line 23
Hobby - ✔✔✔ - ANSWER: > An activity not entered into for profit.
What portion of hobby expenses are deductible? - ✔✔✔ - ANSWER: > The
portion up to the amount of income from the hobby that is reported on the tax
return.
Are funeral expenses deductible? - ✔✔✔ - ANSWER: > No
Is homeowner's or renter's insurance deductible? - ✔✔✔ - ANSWER: > No
Are gambling losses deductible? - ✔✔✔ - ANSWER: > Only to the extent of
winnings reported as income.
Form 6251 - ✔✔✔ - ANSWER: > Alternative Minimum Tax - Individuals
Form 8801 - ✔✔✔ - ANSWER: > Credit for Prior Year Minimum Tax -
Individuals, Estates, and Trusts
QUESTIONS AND ANSWERS - LATEST AND
COMPLETE UPDATE WITH VERIFIED SOLUTIONS –
ASSURED PASS WITH INSTANT DOWNLOAD PDF.
Darren and Misty were married for 5 years before Darren's passing in 2010. Misty
paid all of the cost of maintaining a home for herself and her dependent son,
Vincent. Vincent moved out of the home in November of 2011. Misty was eligible
to file a joint return for 2010. Misty has not remarried.
Can Misty file qualifying widow(er)? - ✔✔✔ - ANSWER: > No
Connor and Jillian were married for 15 years before Connor's death in 2010. Jillian
paid over 50% of the cost of maintaining a home for herself and her dependent
stepson, Keith. Keith lived with Jillian for all of 2011. Jillian was eligible to file a
joint return for 2010. Jillian has not remarried. Can Jillian file qualifying
widow(er)? - ✔✔✔ - ANSWER: > Yes
Julie Ann (72) was claimed by both her son, Mark, and her other son, Samuel.
Mark and Samuel each provided 40% of Julie Ann's support. The remaining 20%
was paid by Julie Ann's niece, Kathy. Who can claim Julie Ann's dependency
exemption? - ✔✔✔ - ANSWER: > No One
Gina (8) was claimed by her mother, Debra, and her grandmother, Myrna. Who
can claim Gina's dependency exemption? - ✔✔✔ - ANSWER: > Debra
,Darrell (12) was claimed by his aunt, Felicia, and his older brother, Gerald. Darrell
lived with both Felicia and Gerald for 4 months. He lived with Felicia for 5 months
separately. He lived with Gerald for 3 months separately. Felicia's AGI was
$29,290. Gerald's AGI was $31,205. Who can claim Darrell's dependency
exemption? - ✔✔✔ - ANSWER: > Gerald
Adjusted Basis - ✔✔✔ - ANSWER: > Usually the original cost plus the cost of
capital improvements and the cost of restoring the property, minus any
reimbursement or deduction of previous casualty losses and depreciation taken.
How is the amount of casualty loss determined for real property? - ✔✔✔ -
ANSWER: > Loss is determined for the entire property as a single item.
How is the amount of casualty loss determined for personal property? - ✔✔✔ -
ANSWER: > Loss is determined separately for each item.
When do you deduct a loss? - ✔✔✔ - ANSWER: > Loss is deducted only for the
year in which the casualty occurred or the theft was discovered.
AGI Limitation of Most Miscellaneous Itemized Deductions - ✔✔✔ - ANSWER:
> 2%
,Form 2106-EZ - ✔✔✔ - ANSWER: > Unreimbursed Employee Business
Expenses
Two Methods for Computing Allowable Transportation
Expenses - ✔✔✔ - ANSWER: > The Regular Method
The Optional Method
What must a taxpayer do to qualify to use the optional method with the standard
mileage rate? - ✔✔✔ - ANSWER: > Own or lease the vehicle; not use the vehicle
for hire; not have more than four vehicles in simultaneous business use at any time
during the year; use the optional method the first year the car or truck is placed in
service.
When are education expenses not deductible? - ✔✔✔ - ANSWER: > If the
education is required to meet the minimum educational requirements in effect
when the taxpayer first obtained the job or if it qualifies him for a new trade or
business.
Are tax preparation fees deductible? - ✔✔✔ - ANSWER: > Yes
What line of Schedule A are investment expenses included on?
, - ✔✔✔ - ANSWER: > Line 23
Hobby - ✔✔✔ - ANSWER: > An activity not entered into for profit.
What portion of hobby expenses are deductible? - ✔✔✔ - ANSWER: > The
portion up to the amount of income from the hobby that is reported on the tax
return.
Are funeral expenses deductible? - ✔✔✔ - ANSWER: > No
Is homeowner's or renter's insurance deductible? - ✔✔✔ - ANSWER: > No
Are gambling losses deductible? - ✔✔✔ - ANSWER: > Only to the extent of
winnings reported as income.
Form 6251 - ✔✔✔ - ANSWER: > Alternative Minimum Tax - Individuals
Form 8801 - ✔✔✔ - ANSWER: > Credit for Prior Year Minimum Tax -
Individuals, Estates, and Trusts
