66 Free Test Bank for Income Tax Fundamentals 2012 30th Edition by Whittenburg

Here is 66 free test bank for Income Tax Fundamentals 2012 30th Edition by Whittenburg Multiple Choice Questions collected from references from the textbook to provide the effective learning and revision method with the aim of less learning, retentive reinforcement and easy passing through the questions. We kindly hope they will support more and more for the students before important exams as well as postgraduate. Besides, popular and accessible taxation and accounting sample test bank is so much loved due to convenience in terms of on-line, free practice, and the quality not inferior to any direct taxation courses. The totally free knowledge bringing desired outcome can only be appeared on our test. Develop yourself with our online useful test bank page!

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Alexis has a long-term capital loss of $13,000 on the sale of stock in 2011. Her taxable income without this transaction is $60,000. What is her taxable income considering this capital loss?

•  $60,000
•  $57,000
•  $54,000
•  $47,000
•  Some other amount.

Which one of the following provisions was passed by Congress to meet a social goal of the tax law?

•  The deduction for job hunting expenses
•  The charitable deduction
•  The moving expense deduction for adjusted gross income
•  The deduction for soil and water conservation costs available to farmers
•  None of the above.

Internet users can sign on to http://www.irs.gov/ and

•  Download tax forms and publications
•  Find links to other useful IRS pages
•  Use a search function to find forms and publications
•  All of the above.

Amended returns are filed on:

•  Form 1040X
•  Form 1120S
•  Form 1041
•  Form 1040Amend.

Which of the following forms may be filed by individual taxpayers?

•  Form 1040
•  Form 1041
•  Form 1065
•  Form 1120
•  None of the above.

Eugene and Velma are married. For 2011, Eugene earned $25,000 and Velma earned $30,000. They have decided to file separate returns and are each entitled to claim one personal exemption. They have no deductions for adjusted gross income. Eugene's itemized deductions are $9,400 and Velma's are $1,700. Assuming Eugene and Velma do not live in a community property state, what is Velma's taxable income?

•  $19,300
•  $20,650
•  $24,300
•  $24,600
•  None of the above.

During 2011, Howard maintained his home in which he and his 16-year-old son resided. The son qualifies as his dependent. Howard's wife died in 2010. What is his filing status for 2011?

•  Single
•  Head of household
•  Married, filing separately
•  Qualifying widow or widower
•  None of the above.

All of the following factors are important in determining whether an individual is required to file an income tax return, except:

•  The taxpayer's filing status
•  The taxpayer's gross income
•  The taxpayer's total itemized deductions
•  The availability of the additional standard deduction for taxpayers who are elderly
•  None of the above.

Which of the following is a true statement with respect to the gross income test for the qualifying relative dependency exemption?

•  The relative must receive less than $3,700 of gross income in order to qualify.
•  The gross income test does not have to be met provided the relative is under age 19 at the end of the tax year.
•  The gross income test does not have to be met provided the relative is under age 24 at the end of the tax year.
•  The gross income test does not have to be met provided the relative is a student.
•  All of the above statements are true.

Taxpayers who are blind get the benefit of:

•  An extra exemption
•  An additional amount added to their standard deduction
•  Two standard deductions
•  None of the above.

Mr. and Mrs. Vonce, both age 62, file a joint return for 2011. They provided all the support for their daughter who is 19, legally blind, and who earns no income. Their son, age 21 and a full-time student at a university, had $4,200 of income and provided 70 percent of his own support during 2011. How many exemptions may Mr. and Mrs. Vonce claim on their 2011 tax return?

•  2
•  3
•  4
•  5
•  None of the above.

Brian (60 years old) is single and legally blind. Brian supports his father, who is 88 years old and blind, by paying the rent and other costs of his father’s residence. What is the total standard deduction amount that Brian should claim on his 2011 tax return?

•  $7,250
•  $13,050
•  $9,950
•  $12,050
•  None of the above.

Irma, widowed in 2009, pays all costs related to the home in which she and her unmarried son live. Her son does not qualify as her dependent. What is her filing status for 2011?

•  Single
•  Married, filing separate
•  Head of household
•  Qualifying widow or widower
•  None of the above.

Albert and Louise, ages 66 and 64 respectively, filed a joint return for 2011. They provided all of the support for their blind 19-year-old son, who had no gross income. They also provided the total support of Louise's father, who is a citizen and life-long resident of Peru. How many exemptions may they claim on their 2011 tax return?

•  2
•  3
•  4
•  5
•  None of the above.

Jill is a 16-year-old child who is claimed as a dependent by her parents. Jill's only income is $1,400 from her bank savings account. What is the amount of Jill's standard deduction for 2011?

•  $1,200
•  $950
•  $3,700
•  $5,800
•  None of the above.

Partnership income is reported on:

•  Form 1040PTR
•  Form 1120S
•  Form 1040X
•  Form 1065.

John, 45 years old and unmarried, contributed $1,000 monthly in 2011 to the support of his parents' household. The parents lived alone and their income for 2011 consisted of $500 from dividends and interest. What is John's filing status and how many exemptions should he claim on his 2011 tax return?

•  Single and 1 exemption
•  Head of household and 1 exemption
•  Single and 3 exemptions
•  Head of household and 3 exemptions
•  None of the above.

Partnerships:

•  Are not taxable entities
•  Are taxed in the same manner as individuals
•  File tax returns on Form 1120
•  File tax returns on Form 1041.

Which of the following is correct?

•  An individual is a reporting entity but not a taxable entity
•  A partnership is a taxable entity and a reporting entity
•  A corporation is a reporting entity but not a taxable entity
•  A partnership is a reporting entity but not a taxable entity.

Martin, a 50-year-old single taxpayer, paid the full cost of maintaining his dependent mother in a home for the aged for the entire year. What is the amount of Martin's standard deduction for 2011?

•  $5,800
•  $8,500
•  $9,950
•  $10,600
•  None of the above.