Intuit Academy Tax Level 1 Final
Exam Newest 2026 2027 With
Complete Questions And Correct
Detailed Answers Brand New Version! |
Intuit Academy Tax Level 1 Final Exam | Comprehensive
Examination
Intuit Academy Tax Level 1 Final Exam Newest 2026 2027
With Complete Questions And Correct Detailed Answers
Brand New Version! actual exam preparation document with
INTRODUCTION
This document is an important and very helpful preparation
resource for Intuit Academy Tax Level 1 Final Exam Newest
2026 2027 With Complete Questions And Correct Detailed
Answers Brand New Version!. Every item uses a focused exam
stem, four response options, a keyed response, and a clear
rationale, making it easier to understand the subject, spot
distractors, and build real exam confidence.
Page 1
, Question 1
A taxpayer receives a state income tax refund of $1,200 in 2025 for taxes paid
in 2024. In 2024, the taxpayer deducted $8,000 in state income taxes as an
itemized deduction, but the standard deduction was $13,850. What amount of
the refund is includible in 2025 gross income?
A. $0
B. $1,200
C. $800
D. $400
Correct Answer: A - $0
RATIONALE
The tax benefit rule requires inclusion only if the prior deduction
reduced taxable income. Since the taxpayer's itemized deductions
($8,000) were less than the standard deduction ($13,850), the state tax
deduction provided no tax benefit. Thus, none of the refund is taxable.
Question 2
Which of the following best describes the tax treatment of a like-kind exchange
under IRC §1031 for real property held for productive use, assuming the
exchange qualifies and no boot is received?
A. Gain is recognized to the extent of the fair market value of the
replacement property.
B. Gain is deferred, and the basis of the replacement property is the same
as the basis of the relinquished property.
C. Gain is recognized in full, but the taxpayer may elect to defer it over
10 years.
D. Gain is deferred, and the basis of the replacement property is its fair
market value.
Correct Answer: B - Gain is deferred, and the basis of the
replacement property is the same as the basis of the relinquished
Page 2
Exam Newest 2026 2027 With
Complete Questions And Correct
Detailed Answers Brand New Version! |
Intuit Academy Tax Level 1 Final Exam | Comprehensive
Examination
Intuit Academy Tax Level 1 Final Exam Newest 2026 2027
With Complete Questions And Correct Detailed Answers
Brand New Version! actual exam preparation document with
INTRODUCTION
This document is an important and very helpful preparation
resource for Intuit Academy Tax Level 1 Final Exam Newest
2026 2027 With Complete Questions And Correct Detailed
Answers Brand New Version!. Every item uses a focused exam
stem, four response options, a keyed response, and a clear
rationale, making it easier to understand the subject, spot
distractors, and build real exam confidence.
Page 1
, Question 1
A taxpayer receives a state income tax refund of $1,200 in 2025 for taxes paid
in 2024. In 2024, the taxpayer deducted $8,000 in state income taxes as an
itemized deduction, but the standard deduction was $13,850. What amount of
the refund is includible in 2025 gross income?
A. $0
B. $1,200
C. $800
D. $400
Correct Answer: A - $0
RATIONALE
The tax benefit rule requires inclusion only if the prior deduction
reduced taxable income. Since the taxpayer's itemized deductions
($8,000) were less than the standard deduction ($13,850), the state tax
deduction provided no tax benefit. Thus, none of the refund is taxable.
Question 2
Which of the following best describes the tax treatment of a like-kind exchange
under IRC §1031 for real property held for productive use, assuming the
exchange qualifies and no boot is received?
A. Gain is recognized to the extent of the fair market value of the
replacement property.
B. Gain is deferred, and the basis of the replacement property is the same
as the basis of the relinquished property.
C. Gain is recognized in full, but the taxpayer may elect to defer it over
10 years.
D. Gain is deferred, and the basis of the replacement property is its fair
market value.
Correct Answer: B - Gain is deferred, and the basis of the
replacement property is the same as the basis of the relinquished
Page 2
