B. Acy Bachelor of Accountancy Tax Accounting (REG) 2

Question 1

Under US tax law, what is the long-term capital gains tax rate for taxpayers in the 22% ordinary income bracket?

Accepted Answer

15%

Answer

0%

Answer

10%

Answer

20%

Question 2

Which of the following items is included in a taxpayer's gross income?

Accepted Answer

Wages from employment

Answer

Gifts received

Answer

Life insurance proceeds paid on death

Answer

Child support payments received

Question 3

The alternative minimum tax (AMT) was primarily designed to ensure that:

Accepted Answer

High-income taxpayers pay at least a minimum amount of tax

Answer

Small businesses pay a minimum tax

Answer

All taxpayers pay the same rate

Answer

Corporate taxes are equalized

Question 4

In a like-kind exchange under IRC Section 1031, which of the following is true?

Accepted Answer

Gain is recognized only to the extent of boot received

Answer

All gains are permanently excluded

Answer

The exchange must involve personal property

Answer

Cash always triggers full gain recognition

Question 5

Which form do sole proprietors use to report business income and expenses on their individual tax return?

Accepted Answer

Schedule C

Answer

Schedule E

Answer

Schedule F

Answer

Form 1065

Question 6

What is the self-employment tax rate applied to net self-employment income up to the Social Security wage base?

Accepted Answer

15.3%

Answer

7.65%

Answer

12.4%

Answer

13.3%