HR BLOCK TEST EXAM PRACTICE REVIEW
2026 TESTED QUESTIONS ANSWERS
◉ Issac comes into your office on April 15. you prepare a return for
him which shows a 2,354 balance due. Issac tells you that he cannot
afford to pay the balance due at this time, but believes he can raise
the funds before the end of the may by selling some stock that he
owns. issace has never filed his return late before and has always
paid the full balance due when he filed. Answer: d. Contact the IRS to
arrange a short-term payment plan.
◉ why would a taxpayer need to file Form 1040-X? Answer: a. to
correct errors on the original return that result in a change to the
original tax liability
◉ Why would a taxpayer need to file form 1040-X? Answer: a. to
correct errors on the original return that result in a change to the
orginial tax liability
◉ in general, what is the applicable time limit for filing an amended
return to claim a refund? an amended return must be filed within
Answer: a. three years of the filing data, of the return being amended
or withing the two years of the date the tax was paid, whichever is
later.
,◉ Which taxpayer has a short-term capital gain or loss on the sale of
the property? Answer: c. melba. she purchased 100 shares of JCN
stock on july 9 2018(the trade date) . she sold the shares on july 9
2019
◉ Nova, a taxpayer who uses the single filing status, purchased 200
shares of ELM stock for $2,000 august 15 2019. She sold the shares
on December 19, 2019. for $3,000. Nova's 2019 taxable inco
$37.250, so her marginal tax rate is 12%. How much tax will Nova
pay on the sale of her shares of stock Answer: B. $120
◉ A taxpayer with a gain on the sale of a collectbile will figure their
tax using the: Answer: C. Schedule D Worksheet
◉ Cameron and Deleah married in 2014, and they purchased their
first home for $280,000 in 2015. it served as their primary residence
until march 2018. After being on the market for ten months, the
home finally sold in Januray 2019 for $410,000. The couple paid a
$24,600 commission as an expense of sale. they will file a joint
return for 2019. their taxable income is $172,000, placing them in
the 24% marginal tax bracket. Answer: a. $0.
◉ When depreciating an asset, the enitr e cost of teh asset is
deducted: Answer: D. over a period of years, rather them all at once.
, ◉ What deprication convention is required when deteriming the
depreciation deduction for real property? Answer: B. Mid-month
◉ Which of the following assets does not qualify for bonus
depreciation? Answer: a. Camera used 45% for business.
◉ Josh pays $1,760 for electricity for his house and farm. of that
expense, 74% of the cost is attributable to his farming operations.
how much is deductible as an expense? Answer: b $1,302.
◉ What is the rule for the deduction of prepaid farm supplies?
Answer: a. Farmers whose prepaid supplies exceed 50% of total
farms expenses may only deduct the expenses in the year used
◉ Which of these would be factors indicating that a contract exists
for prepaid expenses? Answer: a. The contract names a specific
quanitiy
◉ John hires a household employee during the harvest to help
around the house. The wages attriuable to which task cannot be fully
deducted. Answer: b. cooking dinner for the famliy and all the
workers each sunday
2026 TESTED QUESTIONS ANSWERS
◉ Issac comes into your office on April 15. you prepare a return for
him which shows a 2,354 balance due. Issac tells you that he cannot
afford to pay the balance due at this time, but believes he can raise
the funds before the end of the may by selling some stock that he
owns. issace has never filed his return late before and has always
paid the full balance due when he filed. Answer: d. Contact the IRS to
arrange a short-term payment plan.
◉ why would a taxpayer need to file Form 1040-X? Answer: a. to
correct errors on the original return that result in a change to the
original tax liability
◉ Why would a taxpayer need to file form 1040-X? Answer: a. to
correct errors on the original return that result in a change to the
orginial tax liability
◉ in general, what is the applicable time limit for filing an amended
return to claim a refund? an amended return must be filed within
Answer: a. three years of the filing data, of the return being amended
or withing the two years of the date the tax was paid, whichever is
later.
,◉ Which taxpayer has a short-term capital gain or loss on the sale of
the property? Answer: c. melba. she purchased 100 shares of JCN
stock on july 9 2018(the trade date) . she sold the shares on july 9
2019
◉ Nova, a taxpayer who uses the single filing status, purchased 200
shares of ELM stock for $2,000 august 15 2019. She sold the shares
on December 19, 2019. for $3,000. Nova's 2019 taxable inco
$37.250, so her marginal tax rate is 12%. How much tax will Nova
pay on the sale of her shares of stock Answer: B. $120
◉ A taxpayer with a gain on the sale of a collectbile will figure their
tax using the: Answer: C. Schedule D Worksheet
◉ Cameron and Deleah married in 2014, and they purchased their
first home for $280,000 in 2015. it served as their primary residence
until march 2018. After being on the market for ten months, the
home finally sold in Januray 2019 for $410,000. The couple paid a
$24,600 commission as an expense of sale. they will file a joint
return for 2019. their taxable income is $172,000, placing them in
the 24% marginal tax bracket. Answer: a. $0.
◉ When depreciating an asset, the enitr e cost of teh asset is
deducted: Answer: D. over a period of years, rather them all at once.
, ◉ What deprication convention is required when deteriming the
depreciation deduction for real property? Answer: B. Mid-month
◉ Which of the following assets does not qualify for bonus
depreciation? Answer: a. Camera used 45% for business.
◉ Josh pays $1,760 for electricity for his house and farm. of that
expense, 74% of the cost is attributable to his farming operations.
how much is deductible as an expense? Answer: b $1,302.
◉ What is the rule for the deduction of prepaid farm supplies?
Answer: a. Farmers whose prepaid supplies exceed 50% of total
farms expenses may only deduct the expenses in the year used
◉ Which of these would be factors indicating that a contract exists
for prepaid expenses? Answer: a. The contract names a specific
quanitiy
◉ John hires a household employee during the harvest to help
around the house. The wages attriuable to which task cannot be fully
deducted. Answer: b. cooking dinner for the famliy and all the
workers each sunday
