1. (TCO 4) Richard is considering making a $5,000 investment during 2010 in a venture that its promoter
promises will generate immediate tax benefits for him. Richard, who does not anticipate itemizing his
deductions, is in the 33% marginal income tax bra
1. 179 expense is available for all of the following business assets except: (Points : 1)
2. Trade or business expenses are treated as: (Points : 1)
Deductible only if the activity had substant
1. Employers with a payroll tax liability of less than $2,500 at the end of any quarter pay their tax
liability: (Points : 1)
Directly to the authorized depository after the end of the quarter when Form 941 is filed.
Directly to the authorized depository
1. (TCO 2) Sarah incurred the following expenses for her dependent son during the current year:
Payment of principal on son's automobile loan
Interest on above loan
Payment of son's property taxes
Payment of principal on son's personal residence loan
1. (TCO 6) Chuck purchases land for $250,000. He incurs legal fees of $2,000 associated with the
purchase. He subsequently incurs additional legal fees of $16,000 in having the land rezoned from
agricultural to residential. He subdivides the land and inst
1. The deduction for qualified tuition and related expenses includes: (Points : 1)
Insurance and medical expenses.
Only tuition and related expenses.
Room and board.
Transportation and other personal living expenses.
2. In 2010, the U.S. President declare
1. (TCO 9) In terms of probability, which of the following taxpayers would least likely be audited by the
IRS? (Points : 6)
Taxpayer owns and operates a check-cashing service.
Taxpayer is a self-employed electrician.
Taxpayer just received a $3 million pe