Federal Taxation Exam 3 Questions &
Answers (Grade A+)
For purpose of deducting investment interest investment includes
all of the following except -
correct answer ✅Long term capital gains
losses on real estate rentals -
correct answer ✅may be deductible if less than 150,000
A passive activity is when a taxpayer does not materially participate
-
correct answer ✅True
which of the following is taxed by federal gov't but not states -
correct answer ✅treasury interest
generally stock basis includes -
correct answer ✅original cost+brokerage fees
the max amount of net capital losses that an individual may deduct
against income -
correct answer ✅3,000
, Federal Taxation Exam 3 Questions &
Answers (Grade A+)
which of the following is considered first in business losses -
correct answer ✅tax basis
when stock is sold and bought within 30 days the loss is -
correct answer ✅added to the cost
which of the following is preferential tax rate? -
correct answer ✅All of the above
wash sales will disallow when a loss on stock sale only if the same
stock is repurchases within 30 days after the sale -
correct answer ✅false
which of the following taxes would never be deductible on schedule
A-
correct answer ✅Local sewer tax
what is the maximum annual deduction for student loan interest -
correct answer ✅2,500
Answers (Grade A+)
For purpose of deducting investment interest investment includes
all of the following except -
correct answer ✅Long term capital gains
losses on real estate rentals -
correct answer ✅may be deductible if less than 150,000
A passive activity is when a taxpayer does not materially participate
-
correct answer ✅True
which of the following is taxed by federal gov't but not states -
correct answer ✅treasury interest
generally stock basis includes -
correct answer ✅original cost+brokerage fees
the max amount of net capital losses that an individual may deduct
against income -
correct answer ✅3,000
, Federal Taxation Exam 3 Questions &
Answers (Grade A+)
which of the following is considered first in business losses -
correct answer ✅tax basis
when stock is sold and bought within 30 days the loss is -
correct answer ✅added to the cost
which of the following is preferential tax rate? -
correct answer ✅All of the above
wash sales will disallow when a loss on stock sale only if the same
stock is repurchases within 30 days after the sale -
correct answer ✅false
which of the following taxes would never be deductible on schedule
A-
correct answer ✅Local sewer tax
what is the maximum annual deduction for student loan interest -
correct answer ✅2,500
