TEST BANK for Income Tax Fundamentals 2024, 42nd Edition by Gerald Whittenburg; ISBN: 9780357900932, All 12 Chapters Covered, Verified Latest Edition

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,TABLE OF CONTENTS nd nd nd




1. The Individual Income Tax Return.
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2. Gross Income and Exclusions.
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3. Business Income and Expenses, Part I.
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4. Business Income and Expenses, Part II.
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5. Itemized Deductions and Other Incentives.
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6. Credits and Special Taxes.
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7. Accounting Periods and Methods and Depreciation.
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8. Capital Gains and Losses.
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9. Withholding, Estimated Payments, and Payroll Taxes.
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10. Partnership Taxation.
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11. The Corporate Income Tax.
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12. Tax Administration and Tax Planning.
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,Chapter 1: The Individual Income Tax Return
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1. A ndcorporation ndis nda ndreporting ndentity ndbut ndnot nda ndtax-paying ndentity.
FALSE



2. Partnership ndcapital ndgains nd and ndlosses ndare ndallocated ndseparately nd to ndeach ndof ndthe ndpartners.
TRUE



3. Married n d taxpayers n d may n d double n d their n d standard n d deduction n d amount n d by n d filing
n d separaten
returns.
d

FALSE



4. An nditem ndis ndnot ndincluded nd in ndgross ndincome ndunless nd the nd tax ndlaw nd specifies nd that nd the nditem
nd isn
subject ndto ndtaxation.
d

FALSE



5. For ndtaxpayers nd who nddo ndnot nd itemize nddeductions, ndthe ndstandard n d deduction n d amount
nd isn
subtracted ndfrom ndthe ndtaxpayer's ndadjusted ndgross ndincome.
d

TRUE



6. A ndtaxpayer ndwith ndself-employment ndincome ndof nd$600 ndmust ndfile nda ndtax ndreturn.
TRUE



7. A nddependent ndchild nd with nd earned nd income n d in ndexcess ndof nd the ndavailable ndstandard
nd deductionn
amount ndmust ndfile nda ndtax ndreturn.
d

TRUE



8. A ndsingle nd taxpayer, nd who nd is n d not n d blind n d and ndwho n d is nd under ndage nd65, n d with n d income n d of
nd $8,750n
must ndfile nda ndtax ndreturn.
d

FALSE

, 9. If nda ndtaxpayer ndis nddue nda ndrefund, ndit ndwill ndbe ndmailed ndto ndthe ndtaxpayer ndregardless ndof ndwhether
ndhen
or ndshe ndfiles nda ndtax ndreturn.
d

FALSE



10. Taxpayers ndwith ndself-employment ndincome ndof nd$400 ndor ndmore ndmust ndfile nda ndtax ndreturn.
TRUE



11. If nd your n d spouse nd dies n d during n d the n d tax nd year n d and n d you nddo ndnot n d remarry, n d you nd must ndfile
nd asn
single ndfor ndthe ndyear ndof nddeath.
d

FALSE



12. Taxpayers ndwho nddo ndnot ndqualify ndfor ndmarried, ndhead ndof ndhousehold, ndor ndqualifying ndwidow
ndorn
widower ndfiling ndstatus ndmust ndfile ndas ndsingle.
d

TRUE



13. If ndan ndunmarried ndtaxpayer ndpaid ndmore ndthan ndhalf ndthe ndcost ndof ndkeeping nd a ndhome ndwhich ndis
nd then
principal ndplace ndof ndresidence ndof nda ndnephew, ndwho ndis ndnot ndher nddependent, ndshe ndmay nduse ndthe
d

ndhead ndof ndhousehold ndfiling ndstatus.

FALSE



14. The ndmaximum ndofficial ndindividual ndincome ndtax ndrate ndfor nd2012 ndis nd35 ndpercent.
TRUE



15. All ndtaxpayers ndmay nduse ndthe ndtax ndrate ndschedule ndto nddetermine ndtheir ndtax ndliability.
FALSE



16. The ndhead ndof ndhousehold nd tax ndrates nd are ndhigher ndthan ndthe ndrates ndfor nda ndsingle ndtaxpayer.
FALSE



17. Most n d states n d are n d community n d property n d states.
FALSE