1, What type of income is NOT subject to the net investment income tax (NIIT)?
XX Income distribution from a traditional IRA.
Gain from sale of investment real estate.
Dividends.
Passive activity income.
2,
What is the personal exemption phaseout range for a taxpayer filing head of household? AGI of_______
$175,000–$297,500
$200,000–$322,500
$250,000–$372,500
XX$275,000–$397,500
3,
Which statement best describes the Tax Year 2013 federal income tax return filing status options for a married same-sex couple?
Each spouse must file using the filing status they used for Tax Year 2012.
Each spouse must file single unless the spouse qualifies to file as head of household.
The couple must file using a married filing status—either separately or jointly.
XXThe couple must file using a married filing status—either separately or jointly, unless one or both of the spouses qualify to file as head of household.
4,
Beverly and Sandra were legally married in Massachusetts in May 2009. The couple has no dependents. Beverly and Sandra have resided together in Texas since August 2011. The state of Texas does not recognize the marriage of same-sex couples. What filing status must Beverly and Sandra use on their 2013 federal tax return(s)?
Beverly and Sandra must file separate tax returns using the single filing status.
The couple must file separate tax returns using the married filing separately filing status.
XXThe couple must file their tax return(s) using a married filing status—either separately or jointly.
Beverly and Sandra must file a joint tax return using the married filing jointly filing status.
5,
Dan and Larry were legally married in Canada in August 2008. The couple have no dependents. Dan and Larry reside in New York State, which recognizes the marriage of same-sex couples, including those performed outside of New York State. Dan has filed all his federal tax returns in a timely manner, using the single filing status. Larry has not yet filed his 2012 tax return, but plans to file it when he files his 2013 tax return. Which statement best describes Larry's filing status options for Tax Year 2012?
Larry must file single because Dan filed single.
Larry must file as married filing separately because Dan already filed his 2012 return.
XXLarry may file as married filing jointly if Dan agrees to amend his 2012 return to change his filing status. Otherwise, Larry must file as married filing separately.
Dan must amend his 2012 return to change his filing status to a married filing status so that Larry can file his return using a married filing status.
6,
Which of the following is an incorrect statement regarding the simplified option for the home office deduction?
XX The maximum deduction is $5,000 with no carryover due to gross income limitation.
No additional amounts are claimed separately for depreciation or for operating expenses of the home.
Property taxes and home mortgage interest are deducted in full on Schedule A.
Business expenses that are unrelated to the home are fully deductible.
7,
For qualified assets, placed into service in 2013, bonus depreciation is ______%; for 2014, the percentage is _____%
0%; 0%
XX50%; 0%
50%; 50%
100%; 50%
8,
On October 28, Health and Human Services provided a hardship exemption from the tax penalty for failure to maintain minimum essential health coverage. The hardship exemption applies to which group of taxpayers?
XXTaxpayers who enroll in a health care plan through the Marketplace from February 16 through March 31, 2014.
Taxpayers who enroll in a health care plan through the Marketplace from April 1 through December 31, 2014.
Taxpayers under age 26.
Taxpayers who object to insurance for reasons of religious conscience.
9
Which form is used to compute the additional Medicare tax for higher-income taxpayers?
Form 8812
Form 8857
XX Form 8959
Form 8960
10
What is the total amount for personal exemptions that can be taken on a return with a head of household filing status, an AGI of $90,000, and four dependents?
$12,200
XX$19,500
$20,500
$25,000
11
How are itemized deductions and personal exemptions affected on returns of individuals with incomes of $250,000 or more ($300,000 for married couples filing jointly, $275,000 for head of household; and $150,000 for married couples filing separately)?
XX They are limited.
They are eliminated.
They are increased.
They remain the same.
12
Which Tax Research Center research tool publishes weekly articles that often contain brief summaries of state-related information?
The References tab.
XXTax in the News.
State News.
State Tax link under the New! Browse by Category Section.
13
Which of the following Tax Research Center tools enables you to access "Tax Information for each State," an article compiled by the Tax Research Center that contains many easily accessible links to many popular state DOR sites?
XX The References tab.
State News.
State Tax link under the New! Browse by Category Section.
Tax in the News.
14
Which benefit is available to homeowners in 2013?
Mortgage Insurance Premiums are deductible.
Forgiveness of qualified principal residence indebtedness is excluded.
XX Both A and B.
Neither A nor B.
15
What is the applicable exemption for estate and gift tax?
$1,000,000
$5,000,000
$5,120,000
XX$5,250,000
New 4
Cynthia and Rhonda were legally married in New Hampshire in September 2010. They do not have any dependents. Cynthia and Rhonda separately filed their 2010, 2011, and 2012 federal tax returns using the single filing status. Under IRS Revenue Ruling 2013-17 issued in September 2013, the IRS recognizes Cynthia and Rhonda's marriage. Which statement best describes Cynthia and Rhonda's choices about their 2010, 2011, and 2012 tax returns?
XX The couple has the right, but not the obligation, to amend all the tax returns changing the filing status to a married status.
The couple cannot amend any of the tax returns changing the filing status to a married status because the returns were filed before Revenue Ruling 2013-17 was issued.
The couple has the right, but not the obligation, to amend the 2011 and 2012 tax returns changing the filing status to a married status. The couple cannot amend the 2010 tax return because they were not married the entire year.
The couple must amend all of the tax returns changing the filing status to a married status because they are open years in which they were married.
6,
The regular 2013 Section §179 Limit is:
$25,000
$50,000
$200,000
XX$500,000
11
How much is the standard deduction for a nondependent who files as a single taxpayer?
$3,900
XX$6,100
$8,950
$12,200
12
Which of the following Tax Research Center tools enables you to access "Tax Information for each State," an article compiled by the Tax Research Center that contains many easily accessible links to many popular state DOR sites?
Which of the following Tax Research Center tools enables you to access "Tax Information for each State," an article compiled by the Tax Research Center that contains many easily accessible links to many popular state DOR sites?
XXThe References tab.
State News.
State Tax link under the New! Browse by Category Section.
Tax in the News.
14
Which deduction or credit expires in 2017?
State and Local Sales Tax Itemized Deduction.
Medical Expenses deduction.
Adoption Credit.
XXAmerican Opportunity Credit.