ENROLLED AGENT 2024 EXAM PART 1 WITH GUARANTEED ACCURATE ANSWERS |VERIFIED
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ENROLLED AGENT
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ENROLLED AGENT
ENROLLED AGENT 2024 EXAM PART 1
ENROLLED AGENT 2024 EXAM PART 1 WITH GUARANTEED ACCURATE ANSWERS |VERIFIED
On which Schedule would a self-employed farmer report their income and loss? - ACCURATE ANSWERSchedule F
What types of income are reported on Schedule E (Form 1040)? - ACCURATE ANSWE...
ENROLLED AGENT 2024 EXAM PART 1
ENROLLED AGENT 2024 EXAM PART 1 WITH GUARANTEED ACCURATE ANSWERS |
VERIFIED
On which Schedule would a self-employed farmer report their income and loss? -
ACCURATE ANSWER✅✅Schedule F
What types of income are reported on Schedule E (Form 1040)? - ACCURATE
ANSWER✅✅Income from rental real estate, royalties, partnerships, S corps,
trusts, and estates.
What are some situations that make discharged debt non-taxable? - ACCURATE
ANSWER✅✅(1) bankruptcy (2) insolvency (3) amounts cancelled as a gift or
bequest (4) certain student loan cancellations (5) qualified principal residence
indebtedness
What is the Section 121 exclusion, as it pertains to the sale of a personal residence?
- ACCURATE ANSWER✅✅Taxpayers may exclude up to $250,000 in capital
gains from the sale of a main home ($500,000 if married filing jointly)
,What is the normal extended due date for individual tax returns? - ACCURATE
ANSWER✅✅October 15
What IRS forms are used by an individual taxpayer to report the gain or loss from
the sale of stock? - ACCURATE ANSWER✅✅Schedule D and Form 8949.
Form 8949 reports the details of each capital asset transaction. Schedule D is used
to report the net short-term and long-term totals of the gains and losses.
When a taxpayer takes a distribution from a retirement plan, which form does the
retirement plan send to the taxpayer to report the distribution? - ACCURATE
ANSWER✅✅Form 1099-R, Distributions From Pensions, Annuities, Retirement
or Profit-Sharing Plans
What is an instalment sale? - ACCURATE ANSWER✅✅A type of sale that
occurs over the course of several years. Gain on sale can be reported when
instalment payments are collected, rather than at the time of the sale. The most
common type of instalment sale is the sale of real estate.
Can a taxpayer with an amount due efile their return and still pay a balance due by
personal check or money order? - ACCURATE ANSWER✅✅Yes, a taxpayer
can efile their return and submit a check payable to the United States Treasury with
a form 1040-V and mail it to the IRS. As long as the payment is postmarked by the
orginal due date of the return, the payment will be considered timely.
What is a barter transaction? - ACCURATE ANSWER✅✅Bartering is the
exchange of goods or services. A barter exchange is an organization whose
members contract with each other (or with the barter exchange) to exchange
property or services
,What is "Community Income" as it relates to married couples filing separate tax
returns? - ACCURATE ANSWER✅✅Community income is considered to
belong equally to both spouses. This can affect federal tax reporting for separate
returns (MFS), especially when spouses are domiciled in a community property
state.
What is a Qualified domestic relations order (QDRO), and how does it affect a
taxpayer's retirement plan reporting? - ACCURATE ANSWER✅✅A Qualified
domestic relations order (QDRO) is a type of property settlement incident to
divorce. A QDRO allows a taxpayer roll over tax free all or part of a distribution
from a qualified retirement plan that they receive from an ex-spouse under a
QDRO.
How does an annulment affect a taxpayer's filing status? - ACCURATE
ANSWER✅✅An annulment is a voiding of the marriage contract. Unlike a
divorce, an annulment is retroactive. Amended returns must be filed for any open
years affected by the annulment.
What is the IRS definition of a "custodial parent"? - ACCURATE
ANSWER✅✅The custodial parent is the parent in whose home a child lived for
the greater part of the year, i.e., the parent that the child lived with the most days
during the year.
Are tips taxable, or are they considered gifts? - ACCURATE ANSWER✅✅All
tips are taxable. Tips are received as a gratuity for services performed. Tips go
beyond the stated amount of the bill and are given voluntarily.
What information is reported on Form W-2? - ACCURATE ANSWER✅✅Form
W-2 reports wages, salaries, tips, and federal income tax withheld as well as Social
Security and Medicare taxes withheld.
, How does the IRS define permanent disability? - ACCURATE
ANSWER✅✅The IRS defines "permanent disability" as a disability that is
expected to last at least a year and keeps an individual from any gainful activity.
Special exceptions apply to disabled persons who work in a sheltered workshop.
How is tax-exempt interest income reported? - ACCURATE ANSWER✅✅Tax-
exempt interest income must be reported on a taxpayer's Form 1040, but it is not
taxable at the federal level. Municipal bond interest is earned from bonds issued by
states, cities, or counties.
Is interest from a Certificate of Deposit taxable? - ACCURATE
ANSWER✅✅Interest from a certificate of deposit (CD) is taxable in the year it
is earned. A bank or credit union will usually issue a Form 1099-INT that states the
interest each year, unless the amount is under $10.
The amount of the standard deduction depends on: - ACCURATE
ANSWER✅✅Filing status, age of the taxpayer, whether or not the taxpayer is
blind, and whether the taxpayer is a dependent on someone else's return.
What are personal property taxes? Where are these taxes reported? - ACCURATE
ANSWER✅✅Taxes on personal property include DMV fees and property tax on
real estate. Personal property taxes are deductible on Schedule A, subject to certain
limitations.
What is a tax credit, and how does it affect an individual's tax return? -
ACCURATE ANSWER✅✅A tax credit is a dollar-for-dollar reduction in tax.
Tax credits can be deducted directly from taxes owed.
What is a pension? Is pension income taxable? - ACCURATE ANSWER✅✅A
pension is a series of payments made to an employee or survivor (the beneficiary
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