For purposes of the “Kiddie Tax,” unearned income includes

Camellia, an accountant, accepts a new job located 1,000 miles away from her current job location. She has to pay a moving company plus the transportation costs for herself to move to the new location. The new employer does not pay moving costs. Camellia will be allowed a deduction for the work-related

During 2019, Marcia, who is single and is covered under a pension plan at work, contributes $6,000 into a Roth IRA. If her AGI is $68,000, which of the following is true?

Gwen, an independent consultant, traveled to New York City on a business trip. Gwen spent 4 days in business meetings and conferences and then spent 2 days sightseeing in the area. Gwen's plane fare for the trip was $250. Meals cost $160 per day. Hotels and other incidental expenses amounted to $250 per day. Gwen may deduct

David, age 59 and divorced, is the sole support of his mother age 83, who is a resident of a local nursing home for the entire year. David's mother had no income for the year. David's filing status is

Which of the following bonds do not generate tax exempt Federal income?

Rebecca is the beneficiary of a $500,000 insurance policy on her husband's life. She elects to receive $52,000 per year for 10 years rather than receive the entire amount in a lump sum. Of the amount received each year

How long must a capital asset be held to qualify for long-term treatment?

Any expense incurred for business meals must be reduced by

Which of the following is not excluded from income? (Assume that any amounts received by the taxpayer were kept).

Donovan was in an automobile accident while he was going to work. The doctor advised him to stay home for eight months due to his physical injuries. The resulting lawsuit was settled and Donovan received the following amounts: Compensatory damages for physical injury $30,000 Punitive damages 55,000 How much of the settlement must Donovan include in ordinary income on his tax return?

Child support is

Taxable income for an individual is defined as:

Section 1250 does not apply to assets sold or exchanged at a loss.

On November 3, this year, Kerry acquired and placed into service 7-year business equipment costing $80,000. In addition, on May 5th of this year, Kerry had also placed in business use 5-year recovery property costing $15,000. Kerry did not elect Sec. 179 immediate expensing. No other assets were purchased during the year. The depreciation for this year is

In May of this year, Cassie acquired a machine for $20,000 to use in her business. The machine is classified as 5-year property. Cassie does not expense the property under Sec. 179. Cassie's depreciation on the machine this year is

Jason owns a warehouse that is used in business. The FMV of the warehouse is $200,000 (basis $120,000), and the warehouse is subject to a mortgage of $40,000. Jason exchanges the warehouse for land valued at $150,000. The other party also pays him $10,000 cash and assumes the mortgage on the warehouse. Jason's basis in the land received will be

The earned income credit is available only to taxpayers with qualifying children.

A farmer sells his land while the corn crop is still growing. The farmer will be allowed Sec 1231 treatment on the unharvested corn inventory.

Daniella exchanges business land with a $100,000 adjusted basis for $10,000 cash and business land with a $96,000 FMV. What is the amount of gain recognized on the exchange?

Pierce has a $16,000 Sec. 1231 loss, a $12,000 Sec. 1231 gain, and a salary of $50,000. What is the treatment of these items in Pierce’s AGI?

James went back to school to earn a master of accountancy degree. He incurred $7,000 of qualified educational expenses and his modified AGI for the year was $40,000. His Lifetime Learning Credit is

A fiscal year is a 12 month period that ends on the last day of any month other than December.

If an individual is liable for self employment tax, one half of the self employment tax is

For a business, Sec. 1231 property does not include