Tax Consulting Tax Credits and Deductions 3

Question 1

Which of the following credits is available to individual taxpayers but NOT to C corporations?

Accepted Answer

Earned Income Tax Credit (EITC)

Answer

Research and Development (R&D) Credit

Answer

Work Opportunity Tax Credit (WOTC)

Answer

Energy Investment Tax Credit

Question 2

What is the maximum Qualified Business Income (QBI) deduction percentage available to eligible pass-through businesses?

Accepted Answer

20%

Answer

10%

Answer

15%

Answer

25%

Question 3

Medical expenses are deductible as an itemized deduction only to the extent they exceed what percentage of AGI?

Accepted Answer

7.5%

Answer

5%

Answer

10%

Answer

12.5%

Question 4

The Work Opportunity Tax Credit (WOTC) is designed to incentivize employers to hire which group?

Accepted Answer

Members of targeted groups facing significant employment barriers

Answer

Workers from counties with unemployment above 10%

Answer

All workers over age 62 regardless of background

Answer

Part-time workers in federally designated rural zones

Question 5

Under the passive activity loss rules (IRC Section 469), passive losses can generally only offset:

Accepted Answer

Passive activity income only

Answer

Any income regardless of type

Answer

Active (earned) income only

Answer

Portfolio income such as dividends and interest

Question 6

What is the annual gift tax exclusion per recipient for 2024?

Accepted Answer

$18,000

Answer

$15,000

Answer

$16,000

Answer

$17,000

Question 7

What is the bonus depreciation percentage for qualified business property placed in service during calendar year 2024?

Accepted Answer

60%

Answer

100%

Answer

80%

Answer

40%