TAX 4001 EXAMS BUNDLE |Quizzes with Complete verified Solutions

Which of the following amounts are not subject to self-employment tax? - ANSWER Limited partner's share of partnership income Mrs. Brinkley transferred business property (FMV $340,200; adjusted tax basis $111,700) to M&W Incorporated in exchange for a 36% interest in M&W Partnership. Determine M...

A fire destroyed furniture and fixtures used in Jock's business. Jock's adjusted basis in the furniture and fixtures was $81,300. Jock received a $100,000 reimbursement from his insurance company and immediately spent $93,000 to purchase new furniture and fixtures. How much gain or loss must Jo...

Substantiation requirements for taxpayer to get deductions - ANSWER taxpayer has burden of proof for proving all expenses adequate records of expenses must be maintained Can deductions FOR AGI be claimed if taxpayer does not itemize? - ANSWER Yes - itemized deductions are a type of deduction FRO...

any decrease in tax due to a new tax law must be offset by an equal increase in a tax imposed on another group - ANSWER revenue neutrality a rule that a new law (or new measure) expires at a specific date unless further legislative action is taken to extend the law; if no action is taken, the ori...

What are the 2 components of taxes? - ANSWER Tax rate and tax base What are the 3 types of tax rates? - ANSWER Proportional, progressive and regressive Proportional Taxes - ANSWER the rate of tax remains constant over the tax base (sales tax) Progressive taxes - ANSWER Tax rates increase as the t...