tax 1 final UPDATED ACTUAL Questions and
CORRECT Answers
You may exclude from gross income: All of the above
-premiums paid by your employer on your health insurance
-benefits from health insurance you purchase yourself
-worker's comp from personal injury or sickness
Gambling losses of $900 were incurred. Gambling deductible FROM agi, but not subject to percentage floor
winnings were $1000.
Mr. & Mrs. Hart are both over 65 and filing a joint return. 5000
Their income consisted of:
Taxable Interest (6000)
Taxable Dividends (8000)
SS Pmts (10,000)
Tax-Exempt Interest (4000)
Taxable Pension (20,000)
What amount of their SS benefits is taxable?
Steve gave Mike property with an adj basis of 6000. On (1000)
the date of the gift, the property's fmv was 5000. Mike
later sold it for 4000. What is Mike's realized loss?
Frank sells land which he has owned for 5 years for 9000 section 1231 loss
$45,000. Frank purchased the land for 54,000 and used it
in his business. How much and what type of gain/loss will
result from this sale?
Taxpayer paid 6000 real estate taxes on property used in deductible FOR agi
his business.
A loss of 30,000 was incurred when taxpayer's uninsured not deductible at all
home was destroyed by fire.
Cub Corp purchased an automated tube bender for 160,000
500,000 in 2019. The bender, used to manufacture folding
chairs, has an estimated life of 10 yrs and est salvage
value of 60,000. It is 5-yr recovery property. Cub did not
elect a Sec 179 deduction or bonus depreciation. The
maximum cost recovery for tax purposes in 2020 is
Taxpayer, a self-employed carpenter, spent 2100 for small deductible FOR agi
tools to use on the job.
, All interest pmts in the following category ae deductible personal credit card interest
for tax purposes EXCEPT:
-trade or business interest
-qualified residence interest
-personal credit card interest
-investment interest
Don and Cynthia Wallace filed a joint return for 2020 in 11,000(30%*agi=10500,+300+200=11k)
which they reported AGI of 35,000. During 2020, they
made the following contributions to qualified orgs:
Land (at fmv) donated to church (bought in 2010 for
12,000) - 22,000
Cash contribution to church - 300
Cash contribution to community college - 200
Assuming the Wallaces did not elect to reduce the
deductible amount of the land contribution by the
property's appreciation in value, how much can they
claim as a deduction for charitable contributions in 2020?
Bob Brown's aunt Barbara gave him a house in 2020. At 150,000
the time of the gift, the house had fmv of 195,000, the
taxable gift was 180,000, and his aunt's adj basis was
135,000. His aunt paid a gift tax of 45,000. What is Bob's
basis in the house for purposes of determining gain?
CORRECT Answers
You may exclude from gross income: All of the above
-premiums paid by your employer on your health insurance
-benefits from health insurance you purchase yourself
-worker's comp from personal injury or sickness
Gambling losses of $900 were incurred. Gambling deductible FROM agi, but not subject to percentage floor
winnings were $1000.
Mr. & Mrs. Hart are both over 65 and filing a joint return. 5000
Their income consisted of:
Taxable Interest (6000)
Taxable Dividends (8000)
SS Pmts (10,000)
Tax-Exempt Interest (4000)
Taxable Pension (20,000)
What amount of their SS benefits is taxable?
Steve gave Mike property with an adj basis of 6000. On (1000)
the date of the gift, the property's fmv was 5000. Mike
later sold it for 4000. What is Mike's realized loss?
Frank sells land which he has owned for 5 years for 9000 section 1231 loss
$45,000. Frank purchased the land for 54,000 and used it
in his business. How much and what type of gain/loss will
result from this sale?
Taxpayer paid 6000 real estate taxes on property used in deductible FOR agi
his business.
A loss of 30,000 was incurred when taxpayer's uninsured not deductible at all
home was destroyed by fire.
Cub Corp purchased an automated tube bender for 160,000
500,000 in 2019. The bender, used to manufacture folding
chairs, has an estimated life of 10 yrs and est salvage
value of 60,000. It is 5-yr recovery property. Cub did not
elect a Sec 179 deduction or bonus depreciation. The
maximum cost recovery for tax purposes in 2020 is
Taxpayer, a self-employed carpenter, spent 2100 for small deductible FOR agi
tools to use on the job.
, All interest pmts in the following category ae deductible personal credit card interest
for tax purposes EXCEPT:
-trade or business interest
-qualified residence interest
-personal credit card interest
-investment interest
Don and Cynthia Wallace filed a joint return for 2020 in 11,000(30%*agi=10500,+300+200=11k)
which they reported AGI of 35,000. During 2020, they
made the following contributions to qualified orgs:
Land (at fmv) donated to church (bought in 2010 for
12,000) - 22,000
Cash contribution to church - 300
Cash contribution to community college - 200
Assuming the Wallaces did not elect to reduce the
deductible amount of the land contribution by the
property's appreciation in value, how much can they
claim as a deduction for charitable contributions in 2020?
Bob Brown's aunt Barbara gave him a house in 2020. At 150,000
the time of the gift, the house had fmv of 195,000, the
taxable gift was 180,000, and his aunt's adj basis was
135,000. His aunt paid a gift tax of 45,000. What is Bob's
basis in the house for purposes of determining gain?
