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

For 2024, the standard deduction for a single filer under age 65 is $14,600, an increase from the $13,850 amount in 2023.

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

Qualified dividends are taxed at a maximum rate of 20% for taxpayers in the highest ordinary income bracket, compared to ordinary income rates up to 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

The Tax Cuts and Jobs Act of 2017 replaced the graduated corporate tax rate structure with a flat 21% federal corporate income tax rate.

Question 4

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

Accepted Answer

Form 1120

Answer

US corporations file their federal income tax return using Form 1120 (US Corporation Income Tax Return); S corporations use Form 1120-S.

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

Section 179 allows businesses to immediately deduct the full cost of qualifying depreciable assets in the year placed in service, subject to annual dollar limits.

Certified Public Accountant Practice Test

Certified Public Accountant Practice Test

Certified Public Accountant Taxation — Individual & Corporate