Final Exam > Results Page
final exam score:
final exam status:
100%PASSED
Final Exam > Question 1
Alternative minimum tax for individuals requires certain adjustments and preferences. Which of the following is a preference or adjustment item for noncorporate taxpayers?
Certain itemized deductions
Incentive stock options
Tax-exempt interest on private activity bonds issued after August 7, 1986 (other than interest on bonds issued in 2009 and 2010)
XXX All of the above
Final Exam > Question 2
With respect to the alternative minimum tax for individuals, all of the following are tax preference items except:
XXX Casualty loss from Schedule A
Depletion (after the tax-free recovery of basis)
Tax-exempt interest on private activity bonds issued after August 7, 1986 (other than interest on bonds issued in 2009 and 2010)
Intangible drilling costs (in excess of 65% of net income from the properties)
Final Exam > Question 3
Which of the following is a tax preference item?
Incentive stock option (ISO) spread
Miscellaneous itemized deductions
XXX Interest on tax-exempt private activity bonds (other than interest on bonds issued in 2009 and 2010)
Certain medical deductions
Final Exam > Question 4
The AMT exemption amount for a married couple filing jointly in 2015 is:
$41,700
$53,600
$82,100
XXX $83,400
Final Exam > Question 5
The top AMT rate for individuals is:
25%
26%
XXX 28%
39.6%
Final Exam > Question 6
The minimum tax credit for individuals applies only with respect to which of the following items?
Home mortgage interest used for any purpose other than to buy, build, or substantially improve a principal residence or second home
Miscellaneous itemized deductions
XXX Certain depreciation
Medical expenses deducted for regular tax purposes not in excess of 10% of AGI
Final Exam > Question 7
Which of the following is deductible for AMT purposes?
XXX Charitable contributions
Miscellaneous itemized deductions
Personal exemptions
State and local taxes
Final Exam > Question 8
If an individual is liable for self-employment tax, one-half of the self-employment tax in 2015 is deductible as:
A Schedule C business expense
An itemized deduction
XXX A deduction in arriving at adjusted gross income
It is nondeductible.
Final Exam > Question 9
The maximum amount on which the Social Security portion of self-employment tax is figured in 2015 is:
$117,000
XXX $118,500
$250,000
Unlimited
Final Exam > Question 10
Self-employment tax applies to all of the following except:
XXX A distributive share from an investment club
A distributive share from a consulting firm operating as a partnership
Net earnings from a sole proprietorship
Net earnings from an LLC
Final Exam > Question 11
In 2015, Edie Williams earns $118,500 from her day job. She also has a sideline business that nets $10,000. For self-employment tax purposes:
There is no additional tax because she paid all of her Social Security and Medicare taxes at her job.
She owes Social Security taxes only on the $10,000.
XXX She owes Medicare taxes only on the $10,000.
She owes both Social Security and Medicare taxes on the $10,000.
Final Exam > Question 12
Arnie Ellis, who is single, sold an apartment building in 2015 for a gain of $1.2 million, making him subject to the NII tax. His threshold amount is for purposes of determining the NII tax is:
$125,000
XXX $200,000
$250,000
$275,000
Final Exam > Question 13
Which of the following statements is not true regarding the kiddie tax in 2015?
XXX Regardless of the amount of a child’s unearned income, the parent can elect to report it on his own return.
It does not apply to the first $2,100 of unearned income of a child under the kiddie tax age limit.
It applies only with respect to unearned income of a child under the kiddie tax age.
It is figured using Form 8615.
Final Exam > Question 14
A child subject to the kiddie tax has unearned income over $2,100. All of the following are conditions for a parent to elect to report a child’s unearned income on their tax return in 2015 except:
The child made no estimated tax payments and is not subject to backup withholding.
XXX The child did not file a tax return for the prior year.
The child’s income consists only of interest, dividends, and/or capital gain distributions.
The child has no earned income.
Final Exam > Question 15
For purposes of the kiddie tax, a child’s investment income can be reduced by directly connected itemized deductions (subject to the 2% AGI floor) that include all of the following except:
Custodial fees
Service fees to collect interest and dividends
Investment counsel fees
XXX Tax preparation fees
Final Exam > Question 16
The AMT exemption amount for a child subject to the kiddie tax in 2015 may not exceed earned income plus:
$2,100
$6,300
$7,250
XXX $7,400
Final Exam > Question 17
A single taxpayer, age 45 (filing threshold of $10,300), has no health coverage in 2015 and does not qualify for an exemption. What is the maximum shared responsibility payment?
$95
XXX $325
$2,484
$10,300