ch12 - 1. The tax benefit received from a tax credit is...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1. The tax benefit received from a tax credit is never affected by the tax rate of the taxpayer. *a. True b. False 2. The tax benefits resulting from tax credits and tax deductions are affected by the tax rate bracket of the taxpayer. a. True *b. False 3. Refundable credits are those that result in a payment to the taxpayer even when the amount of the credit (or credits) exceeds the taxpayer’s tax liability. *a. True b. False 4. The credit for child and dependent care expenses is an example of a refundable credit. a. True *b. False 5. Any unused general business credit must be carried back 3 years and then forward for 20 years. a. True *b. False 6. A FIFO method is applied to general business credit carryovers, carrybacks, and utilization of credits earned during a particular year. *a. True b. False 7. The purpose of the tax credit for rehabilitation expenditures is to encourage the relocation of businesses from older, economically distressed areas (i.e., inner city) to newer locations. a. True *b. False 8. Qualified rehabilitation expenditures include the cost of acquiring the building and the land. a. True *b. False 9. The tax credit for rehabilitation expenditures for certified historic structures differs from that for qualifying structures that are not certified historic structures. *a. True b. False 10. Some (or all) of the tax credit for rehabilitation expenditures will have to be recaptured if the rehabilitated property is disposed of prematurely or if it ceases to be qualifying property. *a. True b. False 11. If a taxpayer is required to recapture any tax credit for rehabilitation expenditures, the recapture amount must be added to the adjusted basis of the rehabilitation expenditures. *a. True b. False 12. The purpose of the work opportunity tax credit is to encourage employers to hire individuals from specified target groups traditionally subject to high rates of unemployment. *a. True b. False 13. Employers are encouraged by the work opportunity tax credit to hire individuals who have been long-term recipients of family assistance welfare benefits. *a. True b. False 14. The work opportunity tax credit is available only for wages paid to qualifying individuals during their first year of employment. a. True *b. False 15. An employer’s tax deduction for wages is not affected by the work opportunity tax credit. a. True *b. False 16. The incremental research activities credit is 20% of the qualified research expenses that exceed the base amount. *a. True b. False 17. All taxpayers are eligible to take the basic research credit. a. True *b. False 18. Qualified research and experimentation expenditures are not only eligible for the 20% tax credit, but also can be expensed in the year incurred....
View Full Document

This note was uploaded on 04/02/2012 for the course ECON 101 taught by Professor Sing during the Spring '12 term at CUNY Hunter.

Page1 / 23

ch12 - 1. The tax benefit received from a tax credit is...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online