Week 7 Quiz
1)
Max, a single taxpayer, has a $270,000 loss from his sole proprietorship. How much of this loss is not
deductible after considering the excess business loss rules?
2)
Han is a self-employed carpente
...
Week 7 Quiz
1)
Max, a single taxpayer, has a $270,000 loss from his sole proprietorship. How much of this loss is not
deductible after considering the excess business loss rules?
2)
Han is a self-employed carpenter and his wife, Christine, works full-time as a grade school teacher. Han
paid $525 for carpentry tools and supplies, and Christine paid $3,600 as her share of health insurance
premiums (not with pre-tax dollars) for Han and herself in a qualified plan provided by the school district
(not through an exchange). Which of the following is a true statement?
3)
Bruce is employed as an executive and his wife, Marie, is a self-employed realtor. Besides Bruce's salary,
Bruce and Marie own a warehouse that they rent to a local business for storage. This year they paid
$1,250 for electric service in the warehouse. Marie also paid self-employment tax of $6,200 and Bruce
had $7,000 of Social Security taxes withheld from his pay. Marie paid $45 fee to rent a safe deposit box
to store records associated with her realty operation. Which of the following is a true statement?
4)
Hector is a married self-employed taxpayer, and this year he paid $3,000 for his health insurance
premiums (not through an exchange). Under which of the following alternative conditions can Hector
deduct the cost of the premiums for AGI?
5)
Carly donated inventory (ordinary income property) to a church. She purchased the inventory last month
for $100,000, and on the date of the gift, it had a fair market value of $92,000. What is her maximum
charitable contribution deduction for the year related to this inventory if her AGI is $200,000?
6)
When taxpayers donate cash and capital gain property to a public charity, the AGI percentage limitation
is applied in the following order:
7)
Which of the following is a true statement?
8)
Margaret Lindley paid $15,000 of interest on her $300,000 acquisition debt for her home (fair market
value of $500,000), $4,000 of interest on her $30,000 home-equity loan, $1,000 of credit card interest,
and $3,000 of margin interest for the purchase of stock. Assume that Margaret Lindley has $10,000 of
interest income this year and no investment expenses. How much of the interest expense may she
deduct this year?
9)
Frieda is 67 years old and deaf. If Frieda files as a head of household, what amount of standard
deduction can she claim in 2018?
10)
Campbell, a single taxpayer, has $95,000 of profits from her general store that she operates as a sole
proprietorship. She has no employees, $40,000 of qualified property, and $50,000 of taxable income
before the deduction for qualified business income. How much is Campbell’s deduction for qualified
business income?
.
11)
Campbell, a single taxpayer, has $400,000 of profits from her general store that she operates as a sole
proprietorship. She has no employees, $40,000 of qualified property, and $500,000 of taxable income
before the deduction for qualified business income. How much is Campbell’s deduction for qualified
business income?
12)
Campbell, a single taxpayer, has $400,000 of profits from her general store that she operates as a sole
proprietorship. She has $100,000 of employee wages, $40,000 of qualified property, and $500,000 of
taxable income before the deduction for qualified business income. How much is Campbell’s deduction
for qualified business income?
13)
Which of the following is a true statement?
14)
Self-employed taxpayers can deduct the cost of health insurance as a "for" AGI deduction as long as they
do not actually participate in their spouses' employer-provided health plan.
15)
The itemized deduction for taxes includes all types of state, local, and foreign taxes.
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