McGraw Hill's Taxation of Individuals and Business Entities 2020 with
Correct Answers
Form 1040 - correct answers U.S. Individual Income Tax Return
Schedule 1 - correct answers Additional Income and Adjustments to Income
Schedule 2 - correct answers Tax
Schedule 3 - correct answers Nonrefundable Credits
Schedule 4 - correct answers Other Taxes
Schedule 5 - correct answers Other Payments and Refundable Credits
Schedule A - correct answers Itemized Deductions
Schedule B - correct answers Interest and Ordinary Dividends
Schedule C - correct answers Profit or Loss From Business
Schedule D - correct answers Capital Gains and Losses
Form 8949 - correct answers Sales and Other Dispositions of Capital Assets
Schedule E - correct answers Supplemental Income and Loss
Schedule SE - correct answers Self-Employment Tax
Form 1065 - correct answers U.S. Return of Partnership Income
, Schedule K-1 - correct answers Partner's Share of Income, Deductions, Credits, etc.
Form 1120 - correct answers U.S. Corporation Income Tax Return
Form 1120S - correct answers U.S. Income Tax Return for an S Corporation
Schedule K-1 - correct answers Shareholder's Share of Income, Deductions, Credits, etc.
Schedule M-3 - correct answers Net Income (Loss) Reconciliation for Corporations
Form 706 - correct answers United States Estate (and Generation-Skipping Transfer) Tax Return
Form 709 - correct answers United States Gift (and Generation-Skipping Transfer) Tax Return
83(b) election - correct answers a special tax election that employees who receive restricted stock or
other property with ownership restrictions can make to accelerate income recognition from the normal
date when restrictions lapse to the date when the restricted stock or other property is granted. The
election also accelerates the employer's compensation deduction related to the restricted stock or other
property.
§162(m) limitation - correct answers the $1 million deduction limit on nonperformance-based salary
paid to certain key executives.
§179 expense - correct answers an incentive for small businesses that allows them to immediately
expense a certain amount of tangible personal property placed in service during the year.
§197 intangibles - correct answers intangible assets that are purchased that must be amortized over 180
months regardless of their actual useful lives.
§291 depreciation recapture - correct answers the portion of a corporate taxpayer's gain on real
property that is converted from §1231 gain to ordinary income.
Correct Answers
Form 1040 - correct answers U.S. Individual Income Tax Return
Schedule 1 - correct answers Additional Income and Adjustments to Income
Schedule 2 - correct answers Tax
Schedule 3 - correct answers Nonrefundable Credits
Schedule 4 - correct answers Other Taxes
Schedule 5 - correct answers Other Payments and Refundable Credits
Schedule A - correct answers Itemized Deductions
Schedule B - correct answers Interest and Ordinary Dividends
Schedule C - correct answers Profit or Loss From Business
Schedule D - correct answers Capital Gains and Losses
Form 8949 - correct answers Sales and Other Dispositions of Capital Assets
Schedule E - correct answers Supplemental Income and Loss
Schedule SE - correct answers Self-Employment Tax
Form 1065 - correct answers U.S. Return of Partnership Income
, Schedule K-1 - correct answers Partner's Share of Income, Deductions, Credits, etc.
Form 1120 - correct answers U.S. Corporation Income Tax Return
Form 1120S - correct answers U.S. Income Tax Return for an S Corporation
Schedule K-1 - correct answers Shareholder's Share of Income, Deductions, Credits, etc.
Schedule M-3 - correct answers Net Income (Loss) Reconciliation for Corporations
Form 706 - correct answers United States Estate (and Generation-Skipping Transfer) Tax Return
Form 709 - correct answers United States Gift (and Generation-Skipping Transfer) Tax Return
83(b) election - correct answers a special tax election that employees who receive restricted stock or
other property with ownership restrictions can make to accelerate income recognition from the normal
date when restrictions lapse to the date when the restricted stock or other property is granted. The
election also accelerates the employer's compensation deduction related to the restricted stock or other
property.
§162(m) limitation - correct answers the $1 million deduction limit on nonperformance-based salary
paid to certain key executives.
§179 expense - correct answers an incentive for small businesses that allows them to immediately
expense a certain amount of tangible personal property placed in service during the year.
§197 intangibles - correct answers intangible assets that are purchased that must be amortized over 180
months regardless of their actual useful lives.
§291 depreciation recapture - correct answers the portion of a corporate taxpayer's gain on real
property that is converted from §1231 gain to ordinary income.
