Question 1

For a vacation home to be classified in the personal/rental use category,what attributes must be present?

Accepted Answer

To be classified in the personal/rental ...

Question 2

LD Partnership,a cash basis taxpayer,purchases land and a building for $200,000 with $150,000 of the cost being allocated to the building.The gross receipts of the partnership are less than $100,000.LD must capitalize the $50,000 paid for the land,but can deduct the $150,000 paid for the building in the current tax year.

Accepted Answer

A) True 
 B)False

Question 3

The stock of Eagle,Inc.is owned as follows:
Tom sells land and a building to Eagle,Inc.for $212,000.His adjusted basis for these assets is $225,000.Calculate Tom's realized and recognized loss associated with the sale.

Accepted Answer

Tom's realized loss is $13,000.

Ho...

Question 4

Fines and penalties paid for violations of the law (e.g.,illegal dumping of hazardous waste) are deductible only if they relate to a trade or business.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a deduction for AGI?

Accepted Answer

A)  Contribution to a traditional IRA.
B)  Roof repairs to a personal use home.
C)  Safe deposit box rental fee in which stock certificates are stored.
D)  Property tax on personal residence.
E)  All of the above.F) None of the above
G) A) and B)

Question 6

Deductions are allowed unless a specific provision in the tax law provides otherwise.

Accepted Answer

A) True 
 B)False

Exam 6: Deductions and Losses: in General

The stock of Eagle,Inc.is owned as follows: Tom sells land and a building to Eagle,Inc.for $212,000.His adjusted basis for these assets is $225,000.Calculate Tom's realized and recognized loss associated with the sale.

Correct Answer
verified
Tom's realized loss is $13,000.

Ho...
View Answer

Which of the following is a deduction for AGI?

Correct Answer
verified

Correct Answer
verified

Deductions are allowed unless a specific provision in the tax law provides otherwise.

Correct Answer
verified

For a vacation home to be classified in the personal/rental use category,what attributes must be present?

Correct Answer
verified
To be classified in the personal/rental ...
View Answer

Fines and penalties paid for violations of the law (e.g.,illegal dumping of hazardous waste) are deductible only if they relate to a trade or business.

Correct Answer
verified

Exam 6: Deductions and Losses: in General

The stock of Eagle,Inc.is owned as follows: Tom sells land and a building to Eagle,Inc.for $212,000.His adjusted basis for these assets is $225,000.Calculate Tom's realized and recognized loss associated with the sale.

Correct AnswerverifiedTom's realized loss is $13,000.​​ Ho...View AnswerShow Answer

Which of the following is a deduction for AGI?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Deductions are allowed unless a specific provision in the tax law provides otherwise.

Correct AnswerverifiedShow Answer

For a vacation home to be classified in the personal/rental use category,what attributes must be present?

Correct AnswerverifiedTo be classified in the personal/rental ...View AnswerShow Answer

Fines and penalties paid for violations of the law (e.g.,illegal dumping of hazardous waste) are deductible only if they relate to a trade or business.

Correct AnswerverifiedShow Answer

Correct Answer
verified
Tom's realized loss is $13,000.

Ho...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
To be classified in the personal/rental ...
View Answer

Correct Answer
verified