tax quizz 7&8 - A business NOL may be carried back...

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A business NOL may be carried back three years and forward seven years. Answer: True False A business NOL may be carried back 2 years and forward 20 years. Correct Marks for this submission: 1/1. Question 2 Marks: 1 Bill Goggans died and left passive activity property to his nephew, Travis. Bill’s basis in the activity was $30,000, while Travis’ basis was stepped up to $50,000. Suspended losses amounted to $22,000. How much is the passive loss deduction that can offset nonpassive income? Choose one answer. a. $22,000 b. $30,000 c. $2,000 d. None of the above. Correct Marks for this submission: 1/1. Question 3 Marks: 1 The manufacturing deduction under Code Section 199 is only available to C corporations and cooperatives. Answer: True False Incorrect Marks for this submission: 0/1. Question 4 Marks: 1 A working interest which a taxpayer holds in oil and gas properties is not subject to the passive activity rules. Answer: True False Incorrect
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Marks for this submission: 0/1. Question 5 Marks: 1 Ann Jones uses a dry cleaning machine in her business, and it was partially destroyed by fire. At the time of the fire, the adjusted basis was $20,000 and its fair market value was $18,000. The adjusted basis after the fire is $10,000 and the fair market value after the casualty is $10,000. How much is the casualty loss? Choose one answer. a. $10,000 b. $8,000 c. $18,000 d. $20,000 If business or investment property is partially destroyed in a casualty, the amount of the loss is the lesser of adjusted basis or decline in fair market value. Correct Marks for this submission: 1/1. Question 6 Marks: 1 The objective of the net operating loss deduction is to decrease tax equity regarding the taxation of business income. Answer: True False Incorrect Marks for this submission: 0/1. Question 7 Marks: 1 A business incurring a net operating loss in a taxable year can carry the loss back two years and forward 15 years. Answer: True False Net operating loss can be carried back two years and forward 20 years. Incorrect Marks for this submission: 0/1. Question 8 Marks: 1
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Steve Colburn’s portable sawmill used 100% for business, was completely destroyed by fire. The sawmill had an adjusted basis of $35,000 and a fair market value of $50,000 before the fire. The sawmill was uninsured. Steve's casualty loss is: Choose one answer. a. $34,900 b. $50,000 c. $49,900 d. $35,000 Incorrect Marks for this submission: 0/1. Question 9 Marks: 1 Practically all tax shelters were formed as limited partnerships. Answer: True False Incorrect Marks for this submission: 0/1. Question 10 Marks: 1 John Henderson purchased a condo on Hilton Head Island on January 4, 2011. He personally used the condo from May 7, 2011 until May 28, 2011. Because John rented the condo out for 112 days in 2011, he qualifies to deduct all the available rental expenses. Answer:
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tax quizz 7&8 - A business NOL may be carried back...

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