C237 - Tax 1 - Questions| Questions With 100% Correct Answers | Verified

According to the Constitution, where are tax bills supposed to originate? - House of Representatives Are casualty losses on personal-use assets generally deductible? - No. Are charitable donations a for AGI deduction or from AGI deduction? - From AGI deduction Are dividends paid in stock considered in gross income? - No, unless the taxpayer has the option to receive the dividend in cash (instead of stock). Are tax preparation fees deductible? - No. Can a taxpayer file Head of Household if they have a dependent who is not of familial relationship live with them for the entire year? - No, they are a dependent but not a qualifying person. The taxpayer would file Single but claim a deduction for the dependent Correct order in which credits are applied to gross tax liability (from first to last)? - Nonrefundable personal, business, refundable. Expenses incurred to produce investment income as a deduction FROM AGI? - Rental Fees for safe deposit boxes used to hold investment property, subscriptions to investment journals, bank service charges on checking accounts used in an investment or income-producing activity, and fees paid for consulting advice. If an individual receives a capital asset gift and the asset is acquired at a lower price than fair market value - the donor's holding period is added to the donee's holding period If you donate property to a charitable organization, what value do you use? - lesser of FMV or basis limited to 50% of AGI