Certified Public Accountant Taxation — Individual & Corporate

Question 1

For the 2024 tax year, what is the standard deduction amount for a single filer under age 65?

Accepted Answer

$14,600

Answer

$12,000

Answer

$13,850

Answer

$15,500

Question 2

Under the US tax code, what is the maximum tax rate on qualified dividends received by individuals in the highest income bracket?

Accepted Answer

20%

Answer

10%

Answer

15%

Answer

37%

Question 3

A C corporation pays corporate income tax at what flat federal rate under the Tax Cuts and Jobs Act of 2017?

Accepted Answer

21%

Answer

25%

Answer

28%

Answer

35%

Question 4

Which tax form is used by US corporations to file their annual federal income tax return?

Accepted Answer

Form 1120

Answer

Form 1040

Answer

Form 1065

Answer

Form 1041

Question 5

What is the purpose of the IRS Section 179 deduction for businesses?

Accepted Answer

Immediately expense the cost of qualifying business assets

Answer

Depreciate assets over their useful life

Answer

Defer gain on like-kind exchanges

Answer

Deduct losses in excess of at-risk amounts

Question 6

Under the passive activity loss rules (IRC Section 469), when can a real estate professional deduct rental losses against ordinary income without limitation?

Accepted Answer

When the taxpayer materially participates in real property trades or businesses

Answer

When rental income exceeds $25,000

Answer

When the rental property is located in a Qualified Opportunity Zone

Answer

When the taxpayer's AGI is below $100,000