FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 3: Tax Formula and Tax Determination an Overview of Property Transactions

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

True/False

Review LaterAdd Note

Review Later

In 2018, Ed is 66 and single. If he has itemized deductions of $12,700, he should not claim the standard deduction alternative.

A) True
B) False

Correct Answer

verified

Show Answer

Question 32

Multiple Choice

Review LaterAdd Note

Review Later

In which, if any, of the following situations will the kiddie tax not apply?

A) The child is married but does not file a joint return.
B) The child has unearned income of $2,100 or less.
C) The child has unearned income that exceeds more than half of his or her) support.
D) The child is under age 24 and a full-time student.
E) None of these.

F) A) and E)
G) A) and C)

Correct Answer

verified

Show Answer

Question 33

Multiple Choice

Review LaterAdd Note

Millie, age 80, is supported during the current year as follows: $\begin{array}{l}\begin{array} { lc } &\text { Percent of Support }\\\text { Weston (a son) } & 20 \% \\\text { Faith (a daughter) } & 35 \% \\\text { Jake (a cousin) } & 25 \% \\\text { Brayden (unrel ated close family friend) } & 20 \%\end{array}\end{array}$ During the year, Millie lives in an assisted living facility. Under a multiple support agreement, indicate which parties can qualify to claim Millie as a dependent.

In 2018, Hal furnishes more than half of the support of his ex-wife and her father, both of whom live with him. The divorce occurred in 2017. Hal may claim the father-in-law and the ex-wife as dependents.

During 2018, Marvin had the following transactions: $\begin{array}{lr}\text { Salary } & \$ 50,000 \\\text { Bank loan (proceeds used to buy personal auto) } & 10,000 \\\text { Alimony paid (divorce was finalized in 2010) . } & 12,000 \\\text { Child support paid } & 6,000 \\\text { Gift from aunt } & 20,000\end{array}$ Marvy's s AG is

Which, if any, of the following is a correct statement relating to the kiddie tax in 2018?

For tax purposes, married persons filing separate returns are treated the same as single taxpayers.

Which, if any, of the statements regarding the standard deduction is correct?

A decrease in a taxpayer's AGI could increase the amount of medical expenses that can be deducted.

During the year, Kim sold the following assets: business auto for a $1,000 loss, stock investment for a $1,000 loss, and pleasure yacht for a $1,000 loss. Presuming adequate income, how much of these losses may Kim claim?

For dependents who have income, special filing requirements apply.

Which of the following taxpayers may file as a head of household in 2018? Marco provides all the support for his mother, Sienna, who lives by herself in an apartment in Fort Lauderdale. Marco pays the rent and other expenses for the apartment and properly claims his mother as a dependent. Tammy provides over one-half the support for her 18-year old brother, Dan. Dan earned $4,200 in 2018 working at a fast food restaurant and is saving his money to attend college in 2019. Dan lives in Tammy's home. Juan's wife left him late in December of 2017. No legal action was taken and Juan has not heard from her in 2018. Juan supported his 6-year-old son, who lived with him throughout 2018.

In terms of the tax formula applicable to individual taxpayers, which, if any, of the following statements is correct?

In determining the filing requirement based on gross income received, both additional standard deductions i.e., age and blindness) are taken into account.

Jason and Peg are married and file a joint return. Both are over 65 years of age and Jason is blind. Their standard deduction for 2018 is $27,900 $24,000 + $1,300 + $1,300 + $1,300).

Albert buys his mother a TV. For purposes of meeting the support test, Albert cannot include the cost of the TV.

An increase in a taxpayer's AGI could decrease the amount of charitable contribution that can be claimed.

Dan and Donna are husband and wife and file separate returns for the year. If Dan itemizes his deductions from AGI, Donna cannot claim the standard deduction.

An "above the line" deduction refers to a deduction for AGI.

In terms of timing as to any one year, the Tax Tables are available before the Tax Rate Schedules.