Question 1

Which of the following statements regarding limitations on the deductibility of home office expenses of self-employed taxpayers is correct?

Accepted Answer

A)  Deductible home office expenses are itemized deductions.
B)  Deductible home office expenses are itemized deductions subject to a 2 percent floor.
C)  Deductible home office expenses are for AGI deductions limited to gross income from the business minus non-home office related expenses.
D)  Deductible home office expenses are for AGI deductions and may be deducted without limitation.E) C) and D)
F) All of the above

Question 2

Which of the following is a true statement?

Accepted Answer

A)  The deduction for interest on educational loans is subject to a phase-out limitation.
B)  The deduction for moving expenses is subject to a phase-out limitation.
C)  Self-employed taxpayers are allowed to deduct health care premiums even if the taxpayer is eligible to participate in an employer-provided health plan.
D)  Excess business losses are deductible up to $100,000.
E)  All of the choices are false.F) A) and D)
G) A) and C)

Question 3

The rental real estate exception favors:

Accepted Answer

A)  lower income taxpayers (AGI less than $80,000) .
B)  middle income taxpayers (AGI greater than $80,000 and less than $150,000) .
C)  upper income taxpayers (AGI greater than $150,000) .
D)  lower income taxpayers (AGI less than $80,000) and middle income taxpayers (AGI greater than $80,000 and less than $150,000) .
E)  middle income taxpayers (AGI greater than $80,000 and less than $150,000) and upper income taxpayers (AGI greater than $150,000) .F) B) and C)
G) A) and D)

Question 4

This year,Jong paid $3,000 of interest on a qualified education loan.Jong files married filing joint and reports modified AGI of $147,000.What is Jong's deduction for interest expense on an educational loan?

Accepted Answer

A)  $2,500.
B)  $3,000.
C)  $1,500.
D)  $1,000.
E)  None of the choices are correct.F) B) and D)
G) B) and C)

Question 5

Generally,which of the following does not correctly categorize the type of income?

Accepted Answer

A)  Rental real estate - passive income/loss.
B)  Salary - active income/loss.
C)  Dividends - portfolio income/loss.
D)  Capital losses - passive income/loss.
E)  All of the choices are correct.F) A) and D)
G) A) and C)

Question 6

Self-employed taxpayers can choose between claiming a deduction or a credit for the employer portion of self-employment taxes paid.

Accepted Answer

A) True 
 B)False

Question 7

Ilene rents her second home.During 2018,Ilene reported a net loss of $15,000 from the rental.If Ilene is an active participant in the rental and her AGI is $140,000,how much of the loss can she deduct against ordinary income in 2018?

Accepted Answer

A)  $15,000
B)  $10,000
C)  $5,000
D)  $0E) A) and D)
F) B) and C)

Question 8

Lewis is an unmarried law student at State University,a qualified educational institution.Last year Lewis borrowed $30,000 and used the proceeds to pay his university tuition.This year Lewis paid $1,500 of interest on the loan.Which of the following is a true statement if Lewis reports $40,000 of salary and no other items of income or expense?

Accepted Answer

A)  Lewis can deduct all the interest on his student loan for AGI.
B)  Lewis can deduct all the interest on his student loan as an itemized deduction.
C)  Lewis can only deduct $1,000 of the interest on his student loan for AGI.
D)  Lewis can only deduct $1,000 of the interest on his student loan as an itemized deduction.
E)  All of the choices are false.F) A) and E)
G) A) and D)

Question 9

A tax loss from a rental home is generally a passive activity loss.

Accepted Answer

A) True 
 B)False

Question 10

On January 1,2018,Jill contributed $18,000 of cash to the XYZ limited partnership for a 25 percent limited partnership interest (without management rights).On April 6,2018,XYZ,limited partnership distributed $2,000 to Jill.For the year ended December 31,2018,Jill received the following income/loss allocations from her partnership investments: (1)XYZ,limited partnership allocated a $5,000 loss to Jill (2)ABC limited partnership allocated $2,300 of income to Jill.Jill is a limited partner in ABC with no management rights.How much of the $5,000 loss from XYZ limited partnership can Jill deduct in 2018?

Accepted Answer

$2,300 of loss from XYZ is deducted in 2...

Question 11

All reasonable moving expenses are deductible by employees.

Accepted Answer

A) True 
 B)False

Exam 6: Individual for Agi Deductions

Correct Answer
verified
$2,300 of loss from XYZ is deducted in 2...
View Answer

All reasonable moving expenses are deductible by employees.

Correct Answer
verified

Ilene rents her second home.During 2018,Ilene reported a net loss of $15,000 from the rental.If Ilene is an active participant in the rental and her AGI is $140,000,how much of the loss can she deduct against ordinary income in 2018?

Correct Answer
verified

Which of the following statements regarding limitations on the deductibility of home office expenses of self-employed taxpayers is correct?

Correct Answer
verified

The rental real estate exception favors:

Correct Answer
verified

Correct Answer
verified

A tax loss from a rental home is generally a passive activity loss.

Correct Answer
verified

This year,Jong paid $3,000 of interest on a qualified education loan.Jong files married filing joint and reports modified AGI of $147,000.What is Jong's deduction for interest expense on an educational loan?

Correct Answer
verified

Which of the following is a true statement?

Correct Answer
verified

Generally,which of the following does not correctly categorize the type of income?

Correct Answer
verified

Self-employed taxpayers can choose between claiming a deduction or a credit for the employer portion of self-employment taxes paid.

Correct Answer
verified

Exam 6: Individual for Agi Deductions

Correct Answerverified$2,300 of loss from XYZ is deducted in 2...View AnswerShow Answer

All reasonable moving expenses are deductible by employees.

Correct AnswerverifiedShow Answer

Ilene rents her second home.During 2018,Ilene reported a net loss of $15,000 from the rental.If Ilene is an active participant in the rental and her AGI is $140,000,how much of the loss can she deduct against ordinary income in 2018?

Correct AnswerverifiedShow Answer

Which of the following statements regarding limitations on the deductibility of home office expenses of self-employed taxpayers is correct?

Correct AnswerverifiedShow Answer

The rental real estate exception favors:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A tax loss from a rental home is generally a passive activity loss.

Correct AnswerverifiedShow Answer

This year,Jong paid $3,000 of interest on a qualified education loan.Jong files married filing joint and reports modified AGI of $147,000.What is Jong's deduction for interest expense on an educational loan?

Correct AnswerverifiedShow Answer

Which of the following is a true statement?

Correct AnswerverifiedShow Answer

Generally,which of the following does not correctly categorize the type of income?

Correct AnswerverifiedShow Answer

Self-employed taxpayers can choose between claiming a deduction or a credit for the employer portion of self-employment taxes paid.

Correct AnswerverifiedShow Answer

Correct Answer
verified
$2,300 of loss from XYZ is deducted in 2...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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