Miscellaneous
The form that you receive at the end of the year for work performed as an employee (Note: form is needed to file taxes)
What is W-2?
Bob, a plumber, requested that his clients make their checks payable to his son, Steve this year which totaled 50,000 and cash given to Bob of 20,000. How much gross income would Bob report this year?
What is 70,000?
What is the total amount of the following that should be included in Beth's gross income:
Christmas bonus from her employer 800
Christmas gift from her mother in law 600
Unemployment compensation 60
What is 860?
800 + 60
What form is Rental Income Reported?
a. Schedule A
b. Schedule B
c. Schedule E
d. Schedule C
What is schedule E? (c)
This filing status is applicable for taxpayer that claims a qualifying dependent that attends college full- time and is 18 years of age has $100.00 of income.
What is head of household?
Which of the following are generally excluded from Gross Income:
a. Wages
b. Retirement Pay
c. Life insurance proceeds
d. Rewards
What is Life insurance proceeds (c).
ABC company had inventory of 350,000 at year end. During year made purchases of 2,000,000, Sales of 2,200,000 and beginning inventory of 700,000. What is the amount of cost of good sold for current tax year.
What is 2,350,000?
Beg Inv 700,000
+Purchases 2,000,000
-Ending Inv 350,000
Jack received 30,000 gift in cash from his aunt. Jack must include half of the gift in gross income.
True or False
What is False? Gift are not subject to income tax from relative.
What is the percentage rate for Medicare Tax and Social Security Tax rate for an employee?
What is 6.2 and 1.45 percent?
This filing status is for a husband and wife who file their taxes together but live apart.
What is Married Filing Jointly?
The federal tax form currently used to file all taxes.
a. 1040X
b. Schedule K
c. 1065
d. 1040
What is the 1040? (d)
What income tax form does a self-employed sole proprietor used to report income and expenses?
What is Schedule C?
Beth and Mark Edwards are married and file a joint tax return and are 45 years old and not blind. Their income from wages is 40,200. There itemized deductions were 7,500. What is their tax liability for this tax year? Go to www.irs.gov then select Tax Table
What is 873.00 Use tax table for Married Filing Jointly. 40,200-31,500 = 8700 TI
How long does a taxpayer need to own an asset to be considered a. short-term, b. long-term. ______________
What is short term assets are held < or = 12 months.
What is long term assets are held for > 12 months and 1 day?
An individual is filing head of household and is also blind. What is the amount of her/his/ standard deduction for this year?
a. 25,625
b. 23,625
c. 23,850
d. None of the above
What is a ? 23,625 + 2,000 = 25,625
William owns a bookkeeping business and he gives business gifts to Mr. Anderson a client ( 40 +shipping 4),and Mr. Edwards a client received 30 business gift. What is William's deduction for business gifts?
What is the 54 (25 +4 + 25)?
Name two items that are considered travel expenses
What are :
1. Transportation cost (e.g. airfare, rail, car rental)
2. Meal Costs
3. Lodging Costs
4. Tolls
What is the formula for taxable income?
a. Gross income-deductions for AGI =AGI-Deductions=TI
b. Gross income + adjustments = AGI-Deductions= TI
c. AGI -Deductions- Credits= TI
d. None of the above
What is a?
Warren Buffet owner of an apartment building containing ten identical apartments. What amount should Warren report as net rental income for this year. Warren lives in one apartment and rents out the others: Gross rents 110,000, utilities for total building 25,000, Maintenance and repairs for rental apartments only 10,500, Advertising for vacant apartments 3,000, and Depreciation of building (all ten units) 40,000
What is 38,000?(110,000 -22500-10,500-3,000-36,000)
Eric and JT are married with income of 26,000 and 35,000, respectively. They will file separate returns and Eric itemized deductions are 16,200 and JT's are 3,000. The standard deduction for Eric is 15,750. Eric's taxable income based on maximizing his deductions is.
a. 23,000
b. 9,800
c. 16,200
d. None of the above
What is 9,800? (26,000-16,200)
Skip purchased land as an investment on February 10, 2018 for 96,000. This tax year Skip sold the land for 105,000 cash. He was offered 106,000 for the land. What is the nature(long term/short term) and amount of the gain or loss.
What is a long term capital gain of 9,000? (105.000-96,000)
Teresa operates a barber shop out of his home. The shop occupies 520 of the homes 1,400 square feet of floor space. Other information: Gross income 15,000, supplies for the shop 1,200, depreciation on total residence 11,000 and utilities for total residence 5,000.
What is income or loss
What is 7,880 income?
15,000- 1,200(100%), -Depreciation 11,000(37% or 4,070),- Utilities 5,000 (37% or 1,850)
You can deduct a home office used for both personal and business?
True or False
What is false?
When is rental income not taxable?
a. When rented less than 15 days
b. When rented less then 20 days
c. When rented more than 30 days
d. Always taxable
What is when rented less than 15 days--a?
Jason who is 25, earned $7,060 working at Creative Loafing, and is considered a little lazy and lives with his sister Jackie who provides more than half of his support. What is Jackie's filing status for this year?
a. Head of household
b. Single
c. Qualifying Widow
d. Married filing separately
What is Single? (b)