Study guides, Class notes & Summaries

Fundamentals of income tax chapter 5 EXAM 100% SOLVED How far away must you move to be able to claim moving expenses? - ANSWERAt least 40 km Is it necessary to have a job at the new location before moving? - ANSWERNo, you may look for a job after the move. Can you still claim expenses if your move is delayed for reasons such as the sale of your home or waiting for your children's school year to finish? - ANSWERYes. What is net earnings limit in relation to moving expenses? - ANSWERYour...

Module 1 - Income Tax Fundamentals & Calculation - Q&A 100% Correct Answers 2024 Review

Income Tax - Chapter 5 EXAM WITH COMPLETE SOLUTIONS 1. What is the difference between deductions from AGI and deductions for AGI? - ANSWER-for AGI can be claimed whether or not the taxpayer itemizes (everyone gets a for AGI deduction) -from AGI result in a tax benefit only if they exceed the taxpayers standard deduction (not everyone can take a from AGI deduction- must exceed standard) (many of these are going to be limited by their AGI) 4. Can an individual take a medical deduction for ...

Income Tax Fundamentals & Calculations Module 1 Exam 100% solved Which of the following statements regarding the taxation of compensatory and punitive damages is CORRECT? I. Compensatory damages are generally subject to income tax. II. Punitive damages are generally received income tax-free. - ANSWERB) Neither I nor II Both statements are false. Susan's parents have gifted the children, Bill and Alice, age 9 and 12 respectively, various investments. Alice had investment income of $4,00...

Income Tax Fundamentals Exam Graded A+ The Nature of Gross Income The definition of gross income in the tax law is: - answerCORRECT ANSWER D a.All items specifically listed as income in the tax law. b.All income from whatever source derived unless the income is earned illegally. c.All cash payments received for goods provided and services performed. d.All income from whatever source derived. The Nature of Gross Income Which of the following is not taxable for income tax purposes? - ans...

Income Tax Fundamentals Exam 100% solved The Nature of Gross Income The definition of gross income in the tax law is: - answerCORRECT ANSWER D a.All items specifically listed as income in the tax law. b.All income from whatever source derived unless the income is earned illegally. c.All cash payments received for goods provided and services performed. d.All income from whatever source derived. The Nature of Gross Income Which of the following is not taxable for income tax purposes? - ...

Income Tax Fundamentals Chapter 1 Exam 100% solved Form 1040 U.S. Individual Income Tax Return - answerFor federal income tax purposes, a sole proprietor must prepare a personal income tax Form 1040 U.S. Individual Income Tax Return and report the income or loss from the sole proprietorship on his or her personal income tax form. Corportation - answera company or group of people authorized to act as a single entity (legally a person) and recognized as such in law. Partnership - answerPar...

Income Tax Fundamentals and Calculations 100% solved Andrew Wyman works at a graphic arts business, and his wife has a bookkeeping business. Andrew's employer has a profit- sharing plan for employees and contributes 3% of compensation annually. The Wymans have provided the following information for income tax planning this year: Salary- $109,000 Corp. dividends- $3,000 Bookkeeping income- $12,000 IRA contribution- $11,000 Mortgage interest- $9,000 Capital losses- $5,000 Investment i...

Income Tax Chapter 8 EXAM WITH COMPLETE SOLUTIONS The tax rate schedules are set up to tax lower levels of income at higher tax rates than higher levels of income. - ANSWERFALSE - lower levels of income are taxed at lower tax rates. Tax rate schedules are provided for use by (relatively) higher income taxpayers while the tax tables are provided for use by (relatively) lower income taxpayers. - ANSWERTRUE All capital gains are taxed at preferential rates. - ANSWERFALSE - Only long-term c...