B. Acy Bachelor of Accountancy Tax Accounting (REG) 3

Question 1

Which of the following is a 'above-the-line' deduction (adjustment to gross income)?

Accepted Answer

Student loan interest

Answer

Mortgage interest

Answer

Charitable contributions

Answer

Medical expenses

Question 2

Under the passive activity loss rules, which taxpayer can deduct up to $25,000 in rental real estate losses against non-passive income?

Accepted Answer

Active participants with AGI up to $100,000

Answer

Any taxpayer with rental property

Answer

Real estate professionals only

Answer

Taxpayers with modified AGI under $150,000

Question 3

A partnership's ordinary business income is reported to partners on which tax form?

Accepted Answer

Schedule K-1 (Form 1065)

Answer

Form 1099-MISC

Answer

Form W-2

Answer

Schedule K-1 (Form 1120S)

Question 4

The 'wash sale' rule disallows a loss when substantially identical securities are purchased within how many days before or after the sale?

Accepted Answer

30 days

Answer

15 days

Answer

60 days

Answer

90 days

Question 5

Which of the following is NOT subject to self-employment tax?

Accepted Answer

Dividends from corporate stock

Answer

Net profit from a sole proprietorship

Answer

Guaranteed payments from a partnership

Answer

Net earnings from freelance services

Question 6

An S corporation election requires that the corporation have no more than how many shareholders?

Accepted Answer

100

Answer

50

Answer

75

Answer

150