Enrolled agent exam 3
Which of the following examples would be considered a deductible non-business
bad debt? - CORRECT ANSWER-A loan to a friend to put in a new bathroom in
their main home. The loan becomes uncollectible in the current year
Simone and Xander are married and file jointly. Their joint AGI is $129,000 in
2024. They have two dependent children, ages 18 and 19; both are full-time
students. Simone and Xander also claim Xander's disabled mother, Bernice, who
is 72 years of age, as a dependent parent. All of them lived in the United States all
year and all have valid Social Security numbers. Based on this information, what
is the maximum Other Dependent Credit (ODC) that Simone and Xander can claim
on their joint tax return? - CORRECT ANSWER-$1,500
What is the age requirement for a child to be eligible for the Child Tax Credit
(CTC) or Additional Child Tax Credit (ACTC)? - CORRECT ANSWER-The child
must be under the age of 17 at the end of the tax year.
Boyce is a self-employed carpenter. He did a pro-bono construction job for a
church, donating his labor and the materials. He normally charges $40 an hour for
labor and the materials cost $320. He worked on the project for 4 hours.
Assuming he gets a written acknowledgment for his donation, how much of his
contribution is deductible on his Schedule C? - CORRECT ANSWER-0$
Dulce is age 30 and a graduate student. She is married but uses the Married Filing
Separately status. She and her husband keep all their finances separate, and she
pays all her own tuition costs. Her AGI is $40,000 on her separate return. In 2024,
she pays $5,000 in tuition and fees to a qualifying educational institution. Which
education credit/deduction can she claim on her separate tax return? - CORRECT
ANSWER-She is not eligible for an education credit.
Odell pays a variety of fees during the year. Which of the following are deductible
on Schedule A if he itemizes his deductions? - CORRECT ANSWER-DMV fees
Roscoe and Arista are married and file jointly. Their MAGI is $562,000. They have
net investment income of $62,000 from dividends. They sell their main home that
they have owned and lived in for 20 years for $1.2 million and realize a gain of
$645,000 on the sale. They also sell a vacation home for $575,000 and realize a
gain of $130,000 on the sale. What amount do Roscoe and Arista owe for the net
investment income tax? (The NIIT threshold for couples who file jointly is
$250,000.) - CORRECT ANSWER-11,856
Which of the following examples would be considered a deductible non-business
bad debt? - CORRECT ANSWER-A loan to a friend to put in a new bathroom in
their main home. The loan becomes uncollectible in the current year
Simone and Xander are married and file jointly. Their joint AGI is $129,000 in
2024. They have two dependent children, ages 18 and 19; both are full-time
students. Simone and Xander also claim Xander's disabled mother, Bernice, who
is 72 years of age, as a dependent parent. All of them lived in the United States all
year and all have valid Social Security numbers. Based on this information, what
is the maximum Other Dependent Credit (ODC) that Simone and Xander can claim
on their joint tax return? - CORRECT ANSWER-$1,500
What is the age requirement for a child to be eligible for the Child Tax Credit
(CTC) or Additional Child Tax Credit (ACTC)? - CORRECT ANSWER-The child
must be under the age of 17 at the end of the tax year.
Boyce is a self-employed carpenter. He did a pro-bono construction job for a
church, donating his labor and the materials. He normally charges $40 an hour for
labor and the materials cost $320. He worked on the project for 4 hours.
Assuming he gets a written acknowledgment for his donation, how much of his
contribution is deductible on his Schedule C? - CORRECT ANSWER-0$
Dulce is age 30 and a graduate student. She is married but uses the Married Filing
Separately status. She and her husband keep all their finances separate, and she
pays all her own tuition costs. Her AGI is $40,000 on her separate return. In 2024,
she pays $5,000 in tuition and fees to a qualifying educational institution. Which
education credit/deduction can she claim on her separate tax return? - CORRECT
ANSWER-She is not eligible for an education credit.
Odell pays a variety of fees during the year. Which of the following are deductible
on Schedule A if he itemizes his deductions? - CORRECT ANSWER-DMV fees
Roscoe and Arista are married and file jointly. Their MAGI is $562,000. They have
net investment income of $62,000 from dividends. They sell their main home that
they have owned and lived in for 20 years for $1.2 million and realize a gain of
$645,000 on the sale. They also sell a vacation home for $575,000 and realize a
gain of $130,000 on the sale. What amount do Roscoe and Arista owe for the net
investment income tax? (The NIIT threshold for couples who file jointly is
$250,000.) - CORRECT ANSWER-11,856
