CPWA Exam Questions And Answers 2024

IRS forms - correct answer-1040 Individuals 1065 partnerships Schedule A itemized deductions Schedule K-1 partnership distributions AGI - correct answer-Wages, salaries + ordinary dividends + rental real estate income= total income - Qualified plan/IRA contribution= AGI AGI Self Employed - correct answer-LLC Income + other income = total income -(SUBTRACT) HSA, half self-employment tax paid, SEP contribution, self-employed health insurance deduction = AGI Above the line deductions - correct answer-Health savings account, half of self employment tax paid, qualified plan and IRA contributions, self-employed health insurance premiums, alimony paid, student loan interest deduction, tuition fees Recourse Debt - correct answer-a debt for which the debtor is personally liable non-recourse debt - correct answer-a debt that is secured by a pledge of collateral for which the borrower is not personally liable capital account - correct answer-An account used to summarize the owner's equity or basis in a business. Section 1250 - correct answer-Re-characterization of capital gains as ordinary income to recapture accelerated depreciation on certain real property Section 1231 - correct answer-Depreciable and real property used in trade or business and held for more than one year are allowed cap gains treatment of gains and ordinary income treatment of losses Section 1031 - correct answer-like kind exchange rule allowing deferral of the recognition of gains for certain types of property Section 1244 - correct answer-Certain small company stock allowed capital gains treatment (15% of 28%) and ordinary income treatment for losses step transaction doctrine - correct answer-IRS has the power to collapse a series of transactions into one to determine tax liability