H&R Block Income Tax Course EXAM
(updated 2026) Questions Merged With
Correct Verified And Well Analyzed
Solutions || 2026-2027 Latest Update!!!
$2,000,000 Limitation - ANSWER-If the cost of all property eligible for
the 179 deductions during the year exceeds $2,000,000, the deduction
is reduced dollar for dollar by the amount in excess of $2,000,000.
2 Requirements for Moving Expenses - ANSWER-(1) Distance
(2) Work time
179 Expense Deduction - ANSWER-An election to expense up to
$500,000 of the cost of certain property in the year it is placed in
service instead of recovering that amount under MACRS.
179 Restrictions - ANSWER-$2,000,000 Limitation; Business Income
Limitation
401(k) Plan - ANSWER-Deferred compensation plan available through
a wide range of employers. Contributions to a 401(k) plan are tax
deferred to the employee. Distributions from the plan are taxed as
ordinary income to the recipient when received.
403(b) Plan - ANSWER-Deferred compensation plan available to
employees of many public educational institutions and non-profit
organizations.
,403(b) Plans - ANSWER-A tax-advantaged retirement savings plan
available for employees of: public education organizations; some non-
profit organizations; cooperative hospital service organizations.
457 Plan - ANSWER-Deferred compensation plan available to
employees of many government entities.
A 1988 US Series EE Bond, cashed in this year. Election to report
interest annually has not been made. Taxable? - ANSWER-Yes
Accelerated Cost Recovery System (ACRS) - ANSWER-The system of
depreciation in effect from 1981 through 1986.
Acquisition Debt - ANSWER-Debt incurred to acquire, construct, or
improve the taxpayer's principal or secondary residence.
Active Income and Losses - ANSWER-Those for which a taxpayer
performs services.
Adjusted Basis - ANSWER-The cost or other original basis of property
reduced by adjustments such as depreciation allowed or allowable
and increased by capital improvements and other adjustments.
Adjusted Basis - ANSWER-The cost or other original basis of property
reduced by adjustments such as depreciation allowed or allowable
and increased by capital improvements and other adjustments.
Adjusted Basis - ANSWER-The cost or other original basis of property
reduced by adjustments such as depreciation allowed or allowable
and increased by capital improvements and other adjustments.
Adjusted Basis - ANSWER-The original basis PLUS the cost of
improvements; the cost of restoration after a casualty; assessments
for local improvements MINUS any discount, rebate, or
,reimbursement of any portion of the purchase price; insurance
reimbursements for property damages; the amount of casualty or
other losses deducted on the return for any year; depletion or
depreciation allowed or allowable; any gain that is not reported in the
year realized.
Adjusted Basis - ANSWER-Usually the original cost plus the cost of
capital improvements and the cost of restoring the property, minus
any reimbursement or deduction of previous casualty losses and
depreciation taken.
Adjusted Gross Income - ANSWER-Equals gross income less reductions
that are allowable, regardless of whether personal deductions are
itemized.
Adoption Credit - ANSWER-A nonrefundable credit for qualified
adoption expenses incurred for each eligible child. The credit cannot
exceed $13,360 per child. The limit is a per-child limit, not an annual
limit, and can be carried forward for up to five years or until used.
Age of a Qualifying Child - ANSWER-Under 19 at the end of the year
and younger than the taxpayer; A full-time student under 24 at the
end of the year and younger than the taxpayer; Permanently and
totally disabled.
Age Test for QC - ANSWER-(1) Under 19 and younger than taxpayer. (2)
Full-time student under 24 and younger than taxpayer. (3)
Permanently and totally disabled.
AGI Limitation of Most Miscellaneous Itemized Deductions - ANSWER-
2%
, Alimony and separate maintenance payments included in gross
income? - ANSWER-Yes
Alimony Payments - ANSWER-Payments made by one spouse to the
other spouse or former spouse under a written separation or divorce
instrument.
Alternative Straight-Line Depreciation System - ANSWER-A MACRS
system of depreciation using the straight-line method over an
alternative recovery period.
Amended Return - ANSWER-A tax return filed on Form 1040X after the
original return has been filed.
American Opportunity Credit (AOC) - ANSWER-Credit for qualifying
education expenses available for tax years 2009 through 2012. The
AOC may be partially refundable.
Amount of Adoption Credit - ANSWER-Up to $13,360 per eligible child.
Amount of Child Tax Credit - ANSWER-$1,000 per child.
Amount of the Homebuyer Credit - ANSWER-The smaller of $8,000 or
10% of the purchase price of the home.
Amount of the Lifetime Learning Credit - ANSWER-20% of the total
qualified expenses for all eligible students on the tax return.
Amount Realized - ANSWER-The amount of cash received by the seller
from the buyer PLUS the fair market value of any obligations,
property, or services received; the face value of any of the seller's
liabilities the purchaser assumes as part of the transaction.
Annuity - ANSWER-A series of payments under a contract made at
regular intervals over a period of more than one year.
(updated 2026) Questions Merged With
Correct Verified And Well Analyzed
Solutions || 2026-2027 Latest Update!!!
$2,000,000 Limitation - ANSWER-If the cost of all property eligible for
the 179 deductions during the year exceeds $2,000,000, the deduction
is reduced dollar for dollar by the amount in excess of $2,000,000.
2 Requirements for Moving Expenses - ANSWER-(1) Distance
(2) Work time
179 Expense Deduction - ANSWER-An election to expense up to
$500,000 of the cost of certain property in the year it is placed in
service instead of recovering that amount under MACRS.
179 Restrictions - ANSWER-$2,000,000 Limitation; Business Income
Limitation
401(k) Plan - ANSWER-Deferred compensation plan available through
a wide range of employers. Contributions to a 401(k) plan are tax
deferred to the employee. Distributions from the plan are taxed as
ordinary income to the recipient when received.
403(b) Plan - ANSWER-Deferred compensation plan available to
employees of many public educational institutions and non-profit
organizations.
,403(b) Plans - ANSWER-A tax-advantaged retirement savings plan
available for employees of: public education organizations; some non-
profit organizations; cooperative hospital service organizations.
457 Plan - ANSWER-Deferred compensation plan available to
employees of many government entities.
A 1988 US Series EE Bond, cashed in this year. Election to report
interest annually has not been made. Taxable? - ANSWER-Yes
Accelerated Cost Recovery System (ACRS) - ANSWER-The system of
depreciation in effect from 1981 through 1986.
Acquisition Debt - ANSWER-Debt incurred to acquire, construct, or
improve the taxpayer's principal or secondary residence.
Active Income and Losses - ANSWER-Those for which a taxpayer
performs services.
Adjusted Basis - ANSWER-The cost or other original basis of property
reduced by adjustments such as depreciation allowed or allowable
and increased by capital improvements and other adjustments.
Adjusted Basis - ANSWER-The cost or other original basis of property
reduced by adjustments such as depreciation allowed or allowable
and increased by capital improvements and other adjustments.
Adjusted Basis - ANSWER-The cost or other original basis of property
reduced by adjustments such as depreciation allowed or allowable
and increased by capital improvements and other adjustments.
Adjusted Basis - ANSWER-The original basis PLUS the cost of
improvements; the cost of restoration after a casualty; assessments
for local improvements MINUS any discount, rebate, or
,reimbursement of any portion of the purchase price; insurance
reimbursements for property damages; the amount of casualty or
other losses deducted on the return for any year; depletion or
depreciation allowed or allowable; any gain that is not reported in the
year realized.
Adjusted Basis - ANSWER-Usually the original cost plus the cost of
capital improvements and the cost of restoring the property, minus
any reimbursement or deduction of previous casualty losses and
depreciation taken.
Adjusted Gross Income - ANSWER-Equals gross income less reductions
that are allowable, regardless of whether personal deductions are
itemized.
Adoption Credit - ANSWER-A nonrefundable credit for qualified
adoption expenses incurred for each eligible child. The credit cannot
exceed $13,360 per child. The limit is a per-child limit, not an annual
limit, and can be carried forward for up to five years or until used.
Age of a Qualifying Child - ANSWER-Under 19 at the end of the year
and younger than the taxpayer; A full-time student under 24 at the
end of the year and younger than the taxpayer; Permanently and
totally disabled.
Age Test for QC - ANSWER-(1) Under 19 and younger than taxpayer. (2)
Full-time student under 24 and younger than taxpayer. (3)
Permanently and totally disabled.
AGI Limitation of Most Miscellaneous Itemized Deductions - ANSWER-
2%
, Alimony and separate maintenance payments included in gross
income? - ANSWER-Yes
Alimony Payments - ANSWER-Payments made by one spouse to the
other spouse or former spouse under a written separation or divorce
instrument.
Alternative Straight-Line Depreciation System - ANSWER-A MACRS
system of depreciation using the straight-line method over an
alternative recovery period.
Amended Return - ANSWER-A tax return filed on Form 1040X after the
original return has been filed.
American Opportunity Credit (AOC) - ANSWER-Credit for qualifying
education expenses available for tax years 2009 through 2012. The
AOC may be partially refundable.
Amount of Adoption Credit - ANSWER-Up to $13,360 per eligible child.
Amount of Child Tax Credit - ANSWER-$1,000 per child.
Amount of the Homebuyer Credit - ANSWER-The smaller of $8,000 or
10% of the purchase price of the home.
Amount of the Lifetime Learning Credit - ANSWER-20% of the total
qualified expenses for all eligible students on the tax return.
Amount Realized - ANSWER-The amount of cash received by the seller
from the buyer PLUS the fair market value of any obligations,
property, or services received; the face value of any of the seller's
liabilities the purchaser assumes as part of the transaction.
Annuity - ANSWER-A series of payments under a contract made at
regular intervals over a period of more than one year.
