Absent an election by the taxpayer, gross investment income does not include:
Long-term capital gains from the sale of common stock
Long-term capital gains from the sale of common stock as well as qualified dividends
Long-term and short-term capital gains from the sale of common stock as well as qualified dividends
Qualified dividends as well as all capital gains, regardless of the source of the gains
Question 7
Incorrect
Walter Mohr’s house was worth $500,000 in May 2014 at the time he took out a second mortgage of $85,000 on the house. His first mortgage had a balance of $400,000 as of that date. He also owned a vacation home worth $200,000 and subject to a $110,000 mortgage. Walter used the $85,000 to make a down payment on another vacation home on which he borrowed $90,000. \r\rThe amount of home mortgage debt on which Walter may deduct interest in 2014 is:
$595,000
$685,000
(You Answered) $510,000
$680,000
Question 9
Incorrect
Allan Murray sold his residence for $300,000 to Jason Wacker on October 1, 2014. Jason paid the entire 2014 property tax bill of $6,000 in Dec. 2014. The property tax year in their state is the calendar year. Which of the following statements is not correct?
Jason’s adjusted basis in the house is $301,512
Allan’s amount realized is more than $300,000.
Allan is entitled to deduct in 2014 property taxes of $4,488.
(You Answered) All of the above are correct.
Question 11
Incorrect
Which of the following contributions is deductible?
FMV of clothing donated to Salvation Army
(You Answered) Contribution made directly to a needy individual
FMV of services contributed by an attorney to her church
Charitable travel at $.235 per mile