Tax law questions and answers in November 2021

138 How is a prior year's state or local refund received in 2020 treated on the Form 1040 if the taxpayer took the standard deduction in the prior year? Select one: a. The refund is not reported on ...
139 With regard to a personal casualty loss, each of the following statements are true, except: Select one: a. A deduction in 2020 is not available, except for losses incurred in federally declared di...
107 If the divorce decree was executed before 2019, which of the following circumstances are not deductible alimony? Select one: a. Payments are paid by cash, money order, or check. b. Payer and recip...
Matthew is covered by an insurance policy that includes sick pay. He pays the full amount of the premiums. In 2020 he was out of work for a few weeks and received sick pay from this insurance policy. ...
88 Which of the following statements is not correct about ordinary dividends? Select one: a. They are paid out of earnings and profits of a corporation. b. They are ordinary income to the recipient. c...
82 Lamar, age 16, received a Form 1099-B for stocks he sold in the portfolio that his grandmother started for him. The Form 1099-B shows sales proceeds of $3,500 with a basis of $2,000. He also had a ...
61 A self-employed individual may be eligible to deduct health insurance premiums paid for himself/herself, spouse, and dependents on: Select one: a. Schedule A, line 1 b. Schedule C, line 14 c. Sched...
Assumptions: T is a closely held corporation with 100 shares of voting common stock outstanding, which are owned 50 shares by A (adjusted basis $200), 30 shares by B (adjusted basis $400), and 20 shar...
Our biggest client is Trang Nguyen. Trang's only source of income is  $40,000,000 of income from a partnership in which she materially  participates in. She is single and her only itemized deduction...
16. Carrots, Inc. owns 20% of the stocks of Cabbage Corporation. Carrots and Cabbage are both domestic corporations. Cabbage declared P120,000 dividends in 201d. How much dividend income after any app...
What document commences the tax audit process? What are the differences between PAN and FLD/FAN? What are the different ways of collecting delinquent taxes by the BIR? What are the differences between...
For our discussion and to summarize your learnings, answer briefly the following questions: (do not copy-paste from the internet) Where should the books of accounts be kept? Are normal ledgers and jou...
Early in 2021, Ms. Bond bought $120,000 of common shares in a CCPC company with an annual dividend of $16,000. Ms. Bond would like to transfer these shares to her husband or possibly to her 16-year-ol...
Complete a federal tax return for Donald and Dianne Duncan. Donald T. (age 48, DOB: 5/8/1972, SSN: 306-00-1010) and Dianne W. (age 43, DOB: 11/15/1977, SSN: 306-00-1212) are married and have lived tog...
  1. Emily, age 38 and married, has decided to file a separate return for the tax year 2021. Her wages from her job are expected to be $240,000. In addition, her interest income from the savings acco...
   . Comprehensive Module 4: Final Exam Scenario Complete a federal tax return for Donald and Dianne Duncan. Donald T. (age 48, DOB: 5/8/1972, SSN: 306-00-1010) and Dianne W. (age 43, DOB: 11/15/197...
6. Jack had a client who was unable to return to the tax office in a timely manner to review and sign his tax return. Because Jack did not want his client's return to be late, he signed the return as ...
Tricia, age 47, is a single taxpayer with federal adjusted gross income (AGI) of $260,000 for tax year 2021. She will itemize deductions because she paid home mortgage interest and a large number of m...
During 2019, Ms. Jessica Michaels was unemployed and had no income of any kind. In order to survive, she sold a painting on December 1, 2019 for $78,000. This painting had been left to Ms. Michaels by...
Wendy O'Neil (SSN 412-34-5670), who is single, worked full time as the director at a local charity. She resides at 1501 Front Street, Highland, AZ 85711. For the year, she had the following reported o...
Vulko Corp. (Vulko) reported a loss of $332,000 for the year ended October 31, 2020. The following information is also available: 1. Vulko has been profitable over the past three years. Aggregate taxa...