FREE AICPA Regulation Questions and Answers
Which of the following deductions is allowed under the Tax Cuts and Jobs Act (TCJA) for individual taxpayers?
The TCJA capped the deduction for state and local taxes (SALT) at $10,000 for individual taxpayers. The TCJA eliminated personal exemptions, suspended the deduction for mortgage insurance premiums, and suspended the deduction for unreimbursed employee expenses.
Which of the following is considered taxable income for an individual under U.S. federal tax law?
Under U.S. federal tax law, alimony received from divorce agreements executed after December 31, 2018, is considered taxable income. Gifts and inheritances are generally not taxable to the recipient, child support payments are not taxable income, and interest income from municipal bonds is typically exempt from federal income tax.
What is the primary purpose of the Foreign Corrupt Practices Act (FCPA)?
The primary purpose of the Foreign Corrupt Practices Act (FCPA) is to prohibit U.S. companies and their representatives from bribing foreign officials to obtain or retain business. It also requires accurate recordkeeping and internal controls to prevent bribery.
Which of the following business entities is generally subject to pass-through taxation?
An S Corporation and a partnership are generally subject to pass-through taxation, where the income or loss of the business is passed through to the owners' personal tax returns and taxed at individual tax rates.
What is the maximum amount of the lifetime estate and gift tax exemption for an individual in 2024?
For the year 2024, the lifetime estate and gift tax exemption amount is $12.92 million per individual. This exemption allows individuals to transfer up to this amount during their lifetime or at death without incurring federal estate or gift taxes. The exemption amount is subject to annual adjustments for inflation.