INTUIT TAX LEVEL 1 LATEST
STUDY GUIDE
Kevin sells his farm produce to an organic company and sends 3 gift
baskets worth $80 each to clients every year. He doesn't have an
independent business relationship with those clients. What is the total
deductible expense to claim for the gift baskets? - ANSWERS-$75;
there is an upper cap on $25 per gift to each client; 25*3=$75
Dahlia is the owner of a software firm, and she invited one of her clients
to attend a baseball game where they also discussed business matters.
Dahlia purchased two tickets for $150 each. While at the game, Dahlia
bought burgers and soft drinks costing a total of $68.25. What amount
can she claim for deduction? - ANSWERS-$34.12; She cannot deduct
cost of tickets but she can deduct 50% of food cost. 68.25/2= 34.12
QBI - ANSWERS-the net amount of qualified items of income, gain,
deduction and loss from any qualified trade or business.
- QBI deduction =20% of qualified business income earned
Which factors limit the QBI component of QBI deduction? -
ANSWERS-W-2 Wages, QBIA of the qualified property, and type of
business
END OF
PAGE
1
, INTUIT TAX LEVEL 1 LATEST
STUDY GUIDE
How do you decide your tax home if you work in multiple locations? -
ANSWERS-Your tax home is the location where you earn most of your
income.
How to file income tax as a partner - ANSWERS-preparing schedule k-1
Which is the form used by general partnerships, limited partnerships
(LP), limited liability partnerships (LLPs), and certain limited liability
companies (LLCs) to file Schedule K-1? - ANSWERS-Form 1065
schedule k-1 form 1041 - ANSWERS-for beneficiaries who get income
from trusts or estates
schedule k-1 form 1120-s - ANSWERS-for shareholders and S
corporations
Schedule K-1 includes information used to report: - ANSWERS-- Tax
deductions for the partner
- Tax credits for the partner
- info about each partner's share in income and losses
END OF
PAGE
2
, INTUIT TAX LEVEL 1 LATEST
STUDY GUIDE
- changes in partner's capital account during the year
Schedule K-1 ordinary business income is considered earned income
for_______________. - ANSWERS-General partners
In case you report a loss from a partnership or S corporation, your loss
may be reduced or not allowed for the year. You need to apply special
rules to your loss on Schedule E. These rules must be applied in order.
What is the correct order of the special rules that limit losses? -
ANSWERS-Basis rules, at-risk rules, passive activity rules, excess
business loss rules
Ford 1040, Line 1 - ANSWERS-Wages, salaries, tips, etc. Reflects
income from form W2.
Form 1040 Line 2B - ANSWERS-taxable interest; form 1099-INT
What is the child tax credit for each child under 17? - ANSWERS-$2000
Net capital losses over $3000 can be carried forward indefinitely until
exhausted. - ANSWERS-True
END OF
PAGE
3
STUDY GUIDE
Kevin sells his farm produce to an organic company and sends 3 gift
baskets worth $80 each to clients every year. He doesn't have an
independent business relationship with those clients. What is the total
deductible expense to claim for the gift baskets? - ANSWERS-$75;
there is an upper cap on $25 per gift to each client; 25*3=$75
Dahlia is the owner of a software firm, and she invited one of her clients
to attend a baseball game where they also discussed business matters.
Dahlia purchased two tickets for $150 each. While at the game, Dahlia
bought burgers and soft drinks costing a total of $68.25. What amount
can she claim for deduction? - ANSWERS-$34.12; She cannot deduct
cost of tickets but she can deduct 50% of food cost. 68.25/2= 34.12
QBI - ANSWERS-the net amount of qualified items of income, gain,
deduction and loss from any qualified trade or business.
- QBI deduction =20% of qualified business income earned
Which factors limit the QBI component of QBI deduction? -
ANSWERS-W-2 Wages, QBIA of the qualified property, and type of
business
END OF
PAGE
1
, INTUIT TAX LEVEL 1 LATEST
STUDY GUIDE
How do you decide your tax home if you work in multiple locations? -
ANSWERS-Your tax home is the location where you earn most of your
income.
How to file income tax as a partner - ANSWERS-preparing schedule k-1
Which is the form used by general partnerships, limited partnerships
(LP), limited liability partnerships (LLPs), and certain limited liability
companies (LLCs) to file Schedule K-1? - ANSWERS-Form 1065
schedule k-1 form 1041 - ANSWERS-for beneficiaries who get income
from trusts or estates
schedule k-1 form 1120-s - ANSWERS-for shareholders and S
corporations
Schedule K-1 includes information used to report: - ANSWERS-- Tax
deductions for the partner
- Tax credits for the partner
- info about each partner's share in income and losses
END OF
PAGE
2
, INTUIT TAX LEVEL 1 LATEST
STUDY GUIDE
- changes in partner's capital account during the year
Schedule K-1 ordinary business income is considered earned income
for_______________. - ANSWERS-General partners
In case you report a loss from a partnership or S corporation, your loss
may be reduced or not allowed for the year. You need to apply special
rules to your loss on Schedule E. These rules must be applied in order.
What is the correct order of the special rules that limit losses? -
ANSWERS-Basis rules, at-risk rules, passive activity rules, excess
business loss rules
Ford 1040, Line 1 - ANSWERS-Wages, salaries, tips, etc. Reflects
income from form W2.
Form 1040 Line 2B - ANSWERS-taxable interest; form 1099-INT
What is the child tax credit for each child under 17? - ANSWERS-$2000
Net capital losses over $3000 can be carried forward indefinitely until
exhausted. - ANSWERS-True
END OF
PAGE
3
