Income Tax Fundamentals 2024 Test Bank – Comprehensive Guide & Practice Questions (42nd Edition)

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,TABLE OF CONTENTS u u u




1. The Individual Income Tax Return.
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2. Gross Income and Exclusions.
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3. Business Income and Expenses, Part I.
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4. Business Income and Expenses, Part II.
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5. Itemized Deductions and Other Incentives.
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6. Credits and Special Taxes.
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7. Accounting Periods and Methods and Depreciation.
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8. Capital Gains and Losses.
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9. Withholding, Estimated Payments, and Payroll Taxes.
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10. Partnership Taxation.
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11. The Corporate Income Tax.
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12. Tax Administration and Tax Planning.
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,Chapter 1: The Individual Income Tax Return
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1. Aucorporationuisuaureportinguentityubutunotuautax-payinguentity.
FALSE



2. Partnershipucapitalugainsuandulossesuareuallocateduseparatelyu toueachuofutheupartners.
TRUE



3. Marriedu taxpayersu mayu doubleu theiru standardu deductionu amountu byu filingu separateureturns.
FALSE



4. Anuitemuisunotuincludeduinugrossuincomeuunlessu theu taxu lawuspecifiesu thatu theuitemuisusubjectutouta
xation.
FALSE



5. Forutaxpayersu whoudou notu itemizeudeductions,utheustandardu deductionu amountuisusubtracteduf
romutheutaxpayer'suadjustedugrossuincome.
TRUE



6. Autaxpayeruwithuself-employmentuincomeuofu$600umustufileuautaxureturn.
TRUE



7. Audependentuchildu withuearneduincomeu inuexcessuofutheuavailableustandardu deductionuamountumus
tufileuautaxureturn.
TRUE



8. Ausingleutaxpayer,u whou isu notu blindu andu whou isuunderuageu65,u withu incomeu ofu$8,750umustufileuaut
axureturn.
FALSE

, 9. Ifuautaxpayeruisudueuaurefund,uituwillubeumailedutoutheutaxpayeruregardlessuofuwhetheruheuorusheufilesuaut
axureturn.
FALSE



10. Taxpayersuwithuself-employmentuincomeuofu$400uorumoreumustufileuautaxureturn.
TRUE



11. Ifu youru spouseudiesu duringu theu taxuyearu andu youudounotu remarry,u youu mustufileu asusingleuforuth
euyearuofudeath.
FALSE



12. Taxpayersuwhoudounotuqualifyuforumarried,uheaduofuhousehold,uoruqualifyinguwidowuoruwidowerufi
lingustatusumustufileuasusingle.
TRUE



13. Ifuanuunmarriedutaxpayerupaidumoreuthanuhalfutheucostuofukeepinguauhomeu whichuisutheuprincipalupla
ceuofuresidenceuofuaunephew,u whouisunotuherudependent,usheumayuuseutheuheaduofuhouseholdufilingustatus.
FALSE



14. Theumaximumuofficialuindividualuincomeutaxurateuforu2012uisu35upercent.
TRUE



15. Allutaxpayersumayuuseutheutaxurateuscheduleutoudetermineutheirutaxuliability.
FALSE



16. Theuheaduofuhouseholdutaxuratesuareuhigheru thanutheuratesuforuausingleutaxpayer.
FALSE



17. Mostu statesu areu communityu propertyu states.
FALSE