Tax Level 2 - Study PreAssessment
ACTUAL QUESTIONS AND CORRECT
ANSWERS
Without considering any temporary expansions (increases) in the meal deduction, what is the
general rule for meals deduction for trucker's subject to the Department of Transportation's
"hours of service" limits? - CORRECT ANSWERS✅✅*80%
50%
100%
0%
For an NSO, the bargain element is reported as ordinary income. - CORRECT
ANSWERS✅✅*True
False
Visit the Help Panel for more information on non-qualified stock options.
*The bargain element is taxed as compensation, which means you'll need to pay ordinary
income tax on that amount
https://turbotax.intuit.com/tax-tips/investments-and-taxes/non-qualified-stock-
options/L8zsxRi7B
A taxpayer is considered to use a dwelling as a residence if they use the property for personal
purposes during the tax year for more than the greater of 14 days or 10% of the total days
they rent it to others at a fair rental price. - CORRECT ANSWERS✅✅*True
False
*You're considered to use a dwelling unit as a residence if you use it for personal purposes
during the tax year for a number of days that's more than the greater of: 14 days, or. 10% of
the total days you rent it to others at a fair rental price.
Which of the following items are nondeductible business expenses - CORRECT
ANSWERS✅✅*Illegal activities
,$15 grocery store gift card
*Broadway Show
*$1,000 gift card
*Personal expenses
When calculating the depreciable basis of a rental property, the taxpayer should not include
the value of the land - CORRECT ANSWERS✅✅*True
False
A Qualified Charitable Distribution can satisfy only part of your required minimum
distribution for the year - CORRECT ANSWERS✅✅True
*False
Which of the following statements are true?
Select all that apply
-Traditional IRAs are the same as 401(k)s
-There are income limits for Roth IRAs.
-Anyone that is working and/or has earned income to contribute to a -Traditional IRA
regardless of age
-Nondeductible IRA contributions have no income limits - CORRECT
ANSWERS✅✅Select all that apply:
Traditional IRAs are the same as 401(k)s
*There are income limits for Roth IRAs.
*Anyone that is working and/or has earned income to contribute to a Traditional IRA
regardless of age
*Nondeductible IRA contributions have no income limits
What is the Qualified Business Income Deduction also known as - CORRECT
ANSWERS✅✅*Section 199A
C corporation deduction
Qualified benefits
, A 50% deduction
Filing status is determined by your marital status as of December 31 of the tax year. -
CORRECT ANSWERS✅✅*True
False
When an individual converts a non-deductible IRA contribution to a Roth IRA, the earnings
are taxable. - CORRECT ANSWERS✅✅*True
False
Schedules K-2 and K-3 (Form 1065) replace which lines on the K1?
19
16
17
20 - CORRECT ANSWERS✅✅Schedules K-2 and K-3 (Form 1065) replace which lines on
the K1?
19
*16
17
*20
Taiwan purchased stock twelve years ago for $5,000. He sold it yesterday for $2,000,000.
What is Taiwan's adjusted basis of his stock?
$5,000
$2,000,000
$2,005,000
1,995,000 - CORRECT ANSWERS✅✅*$5,000
ACTUAL QUESTIONS AND CORRECT
ANSWERS
Without considering any temporary expansions (increases) in the meal deduction, what is the
general rule for meals deduction for trucker's subject to the Department of Transportation's
"hours of service" limits? - CORRECT ANSWERS✅✅*80%
50%
100%
0%
For an NSO, the bargain element is reported as ordinary income. - CORRECT
ANSWERS✅✅*True
False
Visit the Help Panel for more information on non-qualified stock options.
*The bargain element is taxed as compensation, which means you'll need to pay ordinary
income tax on that amount
https://turbotax.intuit.com/tax-tips/investments-and-taxes/non-qualified-stock-
options/L8zsxRi7B
A taxpayer is considered to use a dwelling as a residence if they use the property for personal
purposes during the tax year for more than the greater of 14 days or 10% of the total days
they rent it to others at a fair rental price. - CORRECT ANSWERS✅✅*True
False
*You're considered to use a dwelling unit as a residence if you use it for personal purposes
during the tax year for a number of days that's more than the greater of: 14 days, or. 10% of
the total days you rent it to others at a fair rental price.
Which of the following items are nondeductible business expenses - CORRECT
ANSWERS✅✅*Illegal activities
,$15 grocery store gift card
*Broadway Show
*$1,000 gift card
*Personal expenses
When calculating the depreciable basis of a rental property, the taxpayer should not include
the value of the land - CORRECT ANSWERS✅✅*True
False
A Qualified Charitable Distribution can satisfy only part of your required minimum
distribution for the year - CORRECT ANSWERS✅✅True
*False
Which of the following statements are true?
Select all that apply
-Traditional IRAs are the same as 401(k)s
-There are income limits for Roth IRAs.
-Anyone that is working and/or has earned income to contribute to a -Traditional IRA
regardless of age
-Nondeductible IRA contributions have no income limits - CORRECT
ANSWERS✅✅Select all that apply:
Traditional IRAs are the same as 401(k)s
*There are income limits for Roth IRAs.
*Anyone that is working and/or has earned income to contribute to a Traditional IRA
regardless of age
*Nondeductible IRA contributions have no income limits
What is the Qualified Business Income Deduction also known as - CORRECT
ANSWERS✅✅*Section 199A
C corporation deduction
Qualified benefits
, A 50% deduction
Filing status is determined by your marital status as of December 31 of the tax year. -
CORRECT ANSWERS✅✅*True
False
When an individual converts a non-deductible IRA contribution to a Roth IRA, the earnings
are taxable. - CORRECT ANSWERS✅✅*True
False
Schedules K-2 and K-3 (Form 1065) replace which lines on the K1?
19
16
17
20 - CORRECT ANSWERS✅✅Schedules K-2 and K-3 (Form 1065) replace which lines on
the K1?
19
*16
17
*20
Taiwan purchased stock twelve years ago for $5,000. He sold it yesterday for $2,000,000.
What is Taiwan's adjusted basis of his stock?
$5,000
$2,000,000
$2,005,000
1,995,000 - CORRECT ANSWERS✅✅*$5,000
